Chicago | Reuters — Chicago Mercantile Exchange live cattle futures scaled to the highest in at least three months on Thursday on fund and technical buying and as traders anticipated possibly higher cash cattle sales this week.
Buying accelerated as futures prices topped highs posted early last week, as the market shrugged off bearish news of weak beef export sales.
Bids and offers at U.S. Plains feedlot markets remain far apart, but tighter near-term supplies of market-ready cattle in northern feedlot areas fueled speculation that sales this week could rise above last week’s prices.
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“After three weeks of $126 trade on a live basis, the market’s hoping we could post a breakthrough of this recent ceiling we have on cash prices,” said Rich Nelson, chief strategist with Allendale Inc. (all figures US$).
Bids in the southern Plains on Thursday were at $124.cwt against asking prices of $128 to $130, traders said.
CME February live cattle closed up 1.625 cents/lb. at 129.275 cents. Actively traded April ended 2.025 cents higher at 127.25 cents and June gained 1.55 cents to close at 118.6 cents.
Feeder cattle futures followed live cattle higher despite steady headwinds from firm corn prices, which touched a near-four-month peak on Thursday.
March feeders gained 1.65 cents/lb. to 149.825 cents while April futures were 1.875 cents higher at 152.3 cents.
Lean hog futures declined on technical selling and as prices for pork and cash market hogs eased.
The wholesale pork carcass cutout value fell 53 cents, to $76.99/cwt, while cash hogs in the closely followed Iowa and southern Minnesota market dropped by $1.48/cwt on Thursday.
Actively traded CME April lean hogs settled 0.925 cent/lb. lower at 69.725 cents after failing to break above chart resistance at its 200-day moving average. May futures were 0.525 cent lower at 75.9 cents.
— Karl Plume reports on agriculture and agribusiness for Reuters from Chicago.
