Chicago | Reuters—Chicago Mercantile Exchange cattle futures rose for a third-straight session Wednesday on strong cash cattle prices, as feeder cattle followed, analysts said.
Meanwhile, lean hog futures fell for a third straight session as traders sold off their net long positions.
“The cash market is definitely the driver on the live cattle side,” said Austin Schroeder of Brugler Marketing and Management.
Cash cattle traded at $191 this week in Kansas, up from $187 this time last month, according to broker StoneX.
CME February live cattle LCG25 settled 2.350 cents higher at 191.375 cents per pound, its highest close since May 28, while January feeder cattle FCF25 gained 1.725 cents to settle at 259.050 cents per pound.
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Feeder cattle followed live cattle, gaining additional strength as packers sought supplies from a limited number of animals on feed lots, according to analysts.
Choice boxed beef lost $0.50 to $311.23 per hundredweight, reported the USDA on Wednesday afternoon, and select boxed beef lost $1.54 to $278.11 per cwt.
Beef packers had losses of an estimated $51.05 per head of cattle on Wednesday, compared with losses of $32.30 per head on Tuesday and losses of $69.95 a week ago, according to marketing advisory service HedgersEdge.
In CME lean hog futures, traders were liquidating huge net long positions, said Schroeder. Pork cutout values fell on Wednesday afternoon.
Pork carcasses lost $0.27 to $92.87 per hundredweight, according to the U.S. Department of Agriculture.
CME lean hog futures ended lower, with February futures LHG25 falling 0.200 cents at 84.375 cents per pound.
The CME lean hog index price was $83.33 for the two days ending Dec. 9, and $83.46 for the two days ending Dec. 6.
