Chicago | Reuters — Chicago Mercantile Exchange live cattle futures were mostly higher on Friday, lifted by end-of-week short covering following a decline to nine-month lows a day earlier, traders said.
Futures, however, remain anchored by plentiful supplies of market-ready cattle and weak cash markets as fed cattle in the U.S. Plains this week traded about $1 to $2/cwt lower than a week ago at around $105/cwt.
“It still looks like we have a few weeks of pressure left in front of us in September with rising cattle numbers seasonally,” said Rich Nelson, chief strategist with Allendale Inc.
Read Also
U.S. grains: Soybean futures set two-week high on US weather worry, soyoil rally
Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
“Next week we will have a push of higher (cattle) numbers available for packers to buy. I think this market is bracing for this next round of lower prices,” he said.
The most-active CME October live cattle contract was the only lower contract, settling down 0.25 cent at 105.15 cents/lb. Deferred contracts were 0.3 to 0.775 cent higher.
Feeder cattle futures also edged up, following gains in live cattle and as corn futures resumed a recent decline that could lower costs for fattening cattle.
Most-active CME October feeders closed 0.25 cent higher at 143.55 cents/lb. while November ended up 0.275 cent at 143.95 cents.
Lean hog futures settled mostly higher, underpinned by expectations for a seasonal increase in packer demand as they fill orders this month for National Pork Month features in October.
Front-month October hog futures finished 0.05 cent higher at 61.45 cents/lb. and December hogs up 0.025 cent to 58.05 cents.
Markets will be closed on Monday for the Labour Day holiday.
— Karl Plume reports on agriculture and agribusiness for Reuters from Chicago.
