Your Reading List

CME live cattle futures mixed, hogs lower

Nov 1 (Reuters) - CME live cattle futures traded narrowly
mixed on Friday in choppy action.
    * Investors are still digesting the U.S. Department of
Agriculture's neutral to mildly bullish cattle-on-feed report,
issued on Thursday, traders said.
    * The report showed September placements close to trade
estimates, with marketings up slightly more than anticipated.
    * The report was a "non event," but lower placements
continued the trend of tight cattle supplies into next year, a
trader said.
    * Separate USDA monthly cold storage data on Thursday showed
total beef stocks in September at 445.0 million lbs, up 3
percent from August and up 5 percent from last year. * Thursday's cold storage outcome ends last summer's string of encouraging beef exports and beef inventory results, an analyst said. LIVE CATTLE - At 8:55 a.m. CDT (1355 GMT), December was up 0.050 cent at 132.775 cents per lb. February was at 134.175 cents, down 0.025 cent. * Investors are adjusting positions before the weekend while waiting for cattle in the cash market to change hands. * Cash cattle bids in the U.S. Plains stood at roughly $132 per hundredweight (cwt), against sellers asking $134 and higher, said feedlots sources. * Market bulls are expecting cash cattle to trade at a minimum of last week's record high of $132 per cwt due to brisk wholesale beef demand and improving packer margins. * Bearish investors see sufficient near-term supplies, and potential reluctance by grocers to buy beef at higher prices, pressuring cash returns. * FEEDER CATTLE - November was up 0.450 cent to 164.825 cents per lb, while January was at 164.300 cents, 0.625 cent higher. * CME feeder cattle drew support from firm deferred-month live cattle futures and weak corn prices. LEAN HOGS - December was at 88.725 cents per lb, down 0.450 cent, while February dropped 0.500 cent to 91.525 cents. * Thursday's lower cash hog prices and more profit-taking
weakened CME hogs on Friday, traders and analysts said. * Packers have supply needs met in the near term, given the seasonal bump in the number of hogs at heavier weight, a trader said. * Supermarkets are buying fresh pork hand-to-mouth while gearing up for featuring turkey during the Thanksgiving Day holiday, he said. * The prospect that the Porcine Epidemic Diarrhea virus (PEDv), which is fatal to piglets, might reduce supplies in 2014 lessened far-month hog futures losses, an analyst said. * On Thursday, the government reported September pork stocks at 566.4 million lbs, up 3 percent from the previous month but down 10 percent from last year. * "The pork number, versus a year ago, is disappointing. It might speak to lackluster consumer pork demand and reduced hog slaughters," the analyst said. (Reporting by Theopolis Waters in Chicago; Editing by John Wallace)

About the author



Stories from our other publications