CME live cattle futures slip on profit-taking

May 30 (Reuters) – Chicago Mercantile Exchange live cattle futures on Friday edged down slightly, pressured by profit-taking after Thursday’s steep climb, traders said.

* Futures’ discount to this week’s prices for market-ready, or cash, cattle limited market losses, they said.

* Friday’s USDA export data for the week ended May 22 showed U.S. beef sales at 12,700 tonnes, mostly to Mexico, compared with 12,100 tonnes the week before.

* At 8:12 a.m. CDT (1312 GMT), June was down 0.025 cent to 138.000 cents. August slipped 0.150 cent to 139.025 cents.

* With this week’s cash cattle trade completed, investors evened up positions on the final day of trading for the month of May, an analyst said.

* Cash cattle in Texas and Kansas moved at mostly $143 per hundredweight (cwt), down $1 from last week. Cash cattle in Nebraska sold at $143, $2 to $3 lower than a week ago.

* This week, packers spent less for cattle in anticipation of a seasonal increase in supplies, traders and analysts said.

* Investors will track wholesale beef prices as retailers buy product for spring grilling demand, they said.

* FEEDER CATTLE – August slipped 0.150 cent per lb to 196.900, September dropped 0.275 cent to 197.800.

* Weak CME live cattle and profit-taking undercut feeder cattle futures.

* LEAN HOGS – June was down 0.575 cent per lb at 113.725 cents, and July slipped 0.250 cent at 120.350 cents.

* CME hogs felt pressure from late Thursday’s lower wholesale pork values, traders said.

* Grocers have all the pork they need heading into the weekend, a trader said.

* Futures’ premium to CME’s hog index, at 110.98, deterred buyers.

* Pre-weekend short-covering and Thursday afternoon’s higher cash hog prices minimized futures losses.

* While some processors have supply needs met for the week, others are buying hogs for early next week, an analyst said.

* Speculation regarding tight supplies pegged to the deadly Porcine Epidemic Diarrhea virus underpinned deferred CME hog contracts.

* Friday’s USDA export data showed U.S. pork sales at 9,100 tonnes, mostly to Mexico, compared with 11,600 tonnes the week before. (Reporting by Theopolis Waters in Chicago)

About the author

Comments

explore

Stories from our other publications