Chicago | Reuters — Chicago Mercantile Exchange live cattle futures firmed on Friday on bargain buying a day after setting one-month lows, and as traders squared positions ahead of monthly feedlot data released by the U.S. Department of Agriculture after the close of trading.
CME February live cattle settled up 0.675 cent at 156.625 cents/lb., and most-active April ended up 0.8 cent at 159.925 cents/lb. (all figures US$).
CME March feeder cattle futures rose 0.875 cent to settle at 180.975 cents/lb.
Soft cash cattle markets hung over futures, capping rallies. Market-ready cattle traded in Kansas and Texas this week at $155 per hundredweight (cwt), down $1 from the bulk of last week’s trades.
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But wholesale beef values inched higher, with choice cuts priced by USDA on Friday afternoon at $271.72/cwt, up 21 cents from the previous day, and select cuts up 74 cents at $256.43/cwt.
After the CME close, USDA reported the number of cattle in U.S. feedlots as of Jan. 1 at 11.682 million head, down three per cent from a year ago, while analysts surveyed by Reuters on average had expected a slightly larger decline of 3.2 per cent. Cattle placements in December were down eight per cent from a year ago, while analysts on average had expected a nine per cent decline.
“Compared to what trade expected, it (USDA’s report) probably had a slightly bearish tone,” said Austin Schroeder, commodity analyst with Nebraska-based Brugler Marketing. However, he noted, cattle futures already declined in the days leading up to the report, a factor that could mute any market impact on Monday.
CME lean hog futures closed higher, pausing after selling off for most of the last four weeks.
February lean hog futures ended up 1.175 cents at 77.825 cents/lb. Most-active April hogs rose 1.325 cents to 85.725 cents/lb., a day after recording a 3-1/2 month low at 84.075 cents.
Wholesale pork prices rose, extending a bounce from two-year lows set this week. USDA quoted the pork carcass cutout on Friday afternoon at $79.99/cwt, up 42 cents from Thursday.
— Julie Ingwersen is a Reuters commodities correspondent in Chicago.
