Chicago | Reuters — Chicago Mercantile Exchange live cattle futures firmed on Monday, supported by tighter supplies of market-ready cattle that propped up cash prices last week, traders said.
“In theory, the feedlots have a little more leverage, because there’s fewer cattle available for the packer to buy,” said Alan Brugler, president of Brugler Marketing.
CME’s most-active February live cattle contract added 0.225 cent to 136.325 cents/lb., though the spot December contract eased 0.35 cent at 131.775 cents/lb. (all figures US$).
CME January feeder cattle futures added 0.75 cent to end at 158.475 cents/lb.
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Market-ready cattle traded firmer at $132 per hundredweight (cwt) across the U.S. Plains cash markets last week.
Tighter supplies of market-ready cattle could keep support under futures through the spring, Brugler said.
“The boards got pretty good premiums out through April,” he said. “It’s anticipating things stay tight.”
Wholesale boxed beef prices eased, with choice cuts falling $1.10, to $283.20/cwt, and select cuts easing $2.25, to $267.28/cwt.
In the hog market, CME lean hog futures eased in the nearby contract as heavier slaughters keep pork supplies plentiful, while deferred months show support.
“We’re not past the peak kill yet, which, if you’re putting more into the system, that creates a little pressure,” said Brugler.
CME December lean hogs eased 0.075 cent at 75.8 cents/lb. and February hogs ended up 0.625 cent at 81.175 cents.
The CME’s lean hog index, a two-day weighted average of cash hog prices, fell to $76.68.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
