Cattle futures fall ahead of feed numbers
On the Chicago Mercantile Exchange, live and feeder cattle were mostly lower ahead of Friday’s On Feed numbers. The report is generally neutral for the markets. October live cattle closed $0.60 lower at $144.25 and December live cattle closed $0.80 lower at $148.55. October feeder cattle closed $0.37 higher at $178.35 and feeder cattle closed $0.20 higher at $178.25.
It was a quiet Friday for direct cash cattle business after an active day on Thursday. For the week, Northern apparel deals were mostly marked to $228, $1 higher than the previous week’s weighted average in Nebraska. Southern live bids were mostly $143, $1 higher than the previous week’s weighted averages.
At the Ogallala Livestock Auction, the USDA says demand was good to moderate, with a large crowd on hand and online. The receipts are up from two weeks ago. The feeder supply included 50% steers and 62% of the offering was over 600 pounds. Medium and large 1 feeder bucks 806 to 844 pounds made $180 to $188.50 and beef 910 to 941 pounds made $190 to $197.50. Medium and large 1 feeder heifers 703 to 745 pounds made $172.75 to $183 and feeder heifers 763 to 799 pounds made $168.50 to $177.50.
In South Dakota, alfalfa and grass hay remain firm compared to last week. USDA says demand has been good for all types of hay and hay grades, especially high quality dairy, as the first delayed cut, then more drought, has resulted in much reduced tonnage. The third cut was very easy in some areas. Alfalfa, supreme, large squares brought $250 to $270. Alfalfa, good, big rounds brought $210. Large squares brought $235. Alfalfa, fair, large rounds, brought $190. Alfalfa/grass mix, large squares brought $200.
Mixed canned beef with light demand for moderate offers. Choice closed $0.23 higher at $248.63 and Select closed $2.80 lower at $219.31. The pick/pick margin is $29.32. The estimated cattle cull was 125,000 head – up 7,000 a week and up 14,000 a year. Saturday’s estimated kill is 33,000 head – down 12,000 on the week and 22,000 on the year.
Weak hog futures were pressured by sharp declines in cash and wholesale business. October lean hogs closed $1.50 lower at $92.62. December lean hogs closed $2.87 lower at $82.80.
Cash hogs closed sharply lower with a light run negotiated. Processors were not interested in moving large numbers at this time. There are probably several factors. One of these is the long-term demand concern. While demand has remained strong, there are concerns that it could falter, especially as concerns grow about slowing global economies. Supply and demand is also a factor here, and the industry is looking forward to next week’s quarterly pig and hog report from the USDA for a better indication of the supply situation in the hog sector. National Daily Direct barrows and gilts ended $7.69 lower, with a base range of $84 to $105 and a weighted average of $86.34; Iowa/Minnesota and Western Corn Belt closed $4.63 lower at a weighted average of $96.67. Eastern Corn Belt prices were not reported due to confidentiality.
According to the USDA Weekly Feeder Hog Report, compared to last week, early weaners were down $2 per head and feeder hogs were down $6 per head. USDA says demand remains light. The total cash composite range was $20 to $44, with a weighted average of $35.67. The overall range for composite formulas was $37.20 to $53.26, with a weighted average of $44.13. The weighted average for all early weaners was $41.39 and the weighted average for all feeder pigs was $54.
Midwest cash market butcher hog prices are steady at $66. In Illinois, cull sow prices were steady with light to moderate demand for light to moderate offerings at $58 to $70. Barrows and gilts were $1 lower with moderate demand for moderate offers at $60 or $69. Boars ranged from $39 to $41 and $9 to $19.
Pork values fell $2.95 to $100.93. Bellies are down more than $15. Buds, thighs and picnics were lower to much lower. The hams were bigger. Estimated hog slaughter is 475,000 head – up 2,000 per week and up 3,000 per year. Saturday’s estimated kill is 134,000 head – up 59,000 on the week and down 103,000 on the year.
https://brownfieldagnews.com/market-news/cattle-futures-lower-ahead-of-on-feed-numbers-7/ Cattle futures fall ahead of feed numbers