* CME feeders follow live cattle higher
* Hog futures supported by firm cash hogs
By Meredith Davis
CHICAGO, Nov 27 (Reuters) - Chicago Mercantile Exchange live
cattle futures rose on Wednesday supported by higher cash cattle
trades this week, analysts and traders said.
Beef packers this week in Kansas paid $132 per cwt, up $1
from last week's trade. Some analysts and traders had expected
steady trade with last week.
"This market has seen a pretty impressive rally given it is
turkey and ham season," said Lane Broadbent, an analyst with KIS
The record low U.S. cattle herd continues to boost cash
Cattle bought this week will be for post-Thanksgiving beef
production, which was supportive to cash prices as some analysts
expect beef demand to improve after the holiday.
The U.S. Department of Agriculture's Wednesday morning
wholesale beef price, or boxed beef, was higher at $202.75 per
cwt for choice cuts, up $1.33 from Tuesday. Select cuts were up
$1.26 at $190.34 per cwt.
"The higher boxed beef helped the cash cattle market. There
are some expectations that packers are going to need cattle to
meet beef demand before the first of the year," Broadbent said.
Beef processing margins have been squeezed as packers have
paid up for cattle in the cash market. Margins were at a
negative $27.65 per head, compared with a negative $31.70 on
Tuesday and a negative $60.70, according to Hedgersedge.com.
December cattle futures settled up 1.150 cents at
133.100 cents per lb. February cattle settled 134.100,
up 1.075 cents.
CME feeder cattle followed live cattle higher. January
feeder cattle ended 0.950 cent per lb higher at 165.325
cents, while March ended up 0.850 cent at 165.150.
CME HOGS SUPPORTED BY FIRM CASH
Firm cash hog prices helped CME hog futures settle higher in
light trading, traders said.
Hogs in the U.S. Midwest traded steady to $1 higher as
packers built up supplies for a large weekend kill, hog brokers
Packers traditionally plan a large slaughter the weekend
following Thanksgiving day as most plants stop production for
Cash hog prices, as reported by the USDA in the closely
watched Iowa/Minnesota direct market, were not available early
on Wednesday, but prices in the eastern Midwest direct market
rose 88 cents to $77.39 per cwt.
The USDA reported early on Wednesday record high hog weights
in the Iowa/southern Minnesota market for the fourth straight
week. The average weight for the week ended Saturday was 281.4
lbs, up from 281.2 lbs in the previous week and up 7 lbs from a
Deferred month hog contracts were supported by concerns
regarding the spread of the Porcine Epidemic Diarrhea virus
(PEDv), a fatal piglet disease. The disease could reduce hog
supplies in 2014.
December hog futures closed up 0.175 cent at 85.800
cents per lb. February hogs closed up 0.075 cent at
CME livestock futures trading will be closed Thursday for
the Thanksgiving Day holiday, and will trade in truncated
sessions Friday, closing at 12:15 p.m. CST.
(Editing by Bob Burgdorfer)