Chicago | Reuters — Chicago Mercantile Exchange live cattle futures ended mixed on Friday, with firm cash cattle markets supporting actively traded nearby months.
Forecasts for possible winter weather in the U.S. Plains next week, which could slow down weight gains and cattle marketings, added further support.
Feedlot cattle in Nebraska traded at mostly $119/cwt on Thursday, up $1 from last week (all figures US$). Offers for cattle at southern Plains feedlots held firm at $121-$122/cwt, with trading expected on Friday afternoon.
“All in all, the cattle market looks really firm right now, even though market-ready supplies in the cash market are higher than a year ago,” said Doug Houghton, analyst with Brock Associates Inc.
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“If you look out at these smaller placements, you’re looking at smaller cattle supplies in the late spring and into summer that could boost prices,” he said, referring to a U.S. Department of Agriculture (USDA) cattle supply report released Thursday.
USDA pegged the supply of all cattle on feed as of Dec. 1 at 102 per cent of a year ago while cattle placed on feed in November were at 95 per cent of a year ago.
CME February live cattle rose 0.35 cent to 122.7 cents/lb. Deferred contracts were up 0.25 to down 0.625 cent.
Feeder cattle futures ended mixed as higher corn prices limited buying interest.
CME January feeder cattle futures ended down 0.075 cent at 147.35 cents while March futures were 0.075 cent higher at 145.525 cents.
Nearby lean hog contracts eased on weak cash hog prices, while deferred contracts firmed on a slightly smaller-than-expected U.S. hog breeding herd.
USDA said on Thursday afternoon the U.S. hog herd and supplies kept for breeding were both at below expectations, at 102 per cent of a year ago.
The most active CME February hog futures contract ended down 1.25 cents at 61.1 cents/lb. Deferred contracts were down 0.55 cent to up 0.475 cent.
— Karl Plume reports on agriculture and ag commodities for Reuters from Chicago.
