* Feeder cattle follow live cattle higher
* Weak cash, pork prices weigh on CME hogs
* USDA cattle, storage reports on Friday
By Meredith Davis
CHICAGO, Nov 21 (Reuters) - CME live cattle futures rose on
Thursday on short-covering after recent market losses and on
investors pricing in initial cash sales, traders said.
On Thursday, cash cattle in Kansas and Texas lightly traded
at $131 per cwt, $1 lower than the previous week, feedlot
Lackluster beef demand and poor packer margins pressured
this week's cash cattle prices.
"It wasn't much of a surprise where cash is trading," said
Craig Turner, commodities broker at Daniels Trading.
The U.S. Department of Agriculture's choice beef wholesale
price on Thursday morning was $198.47 per cwt, down 87 cents
from Wednesday. Select cuts fell $1.68 to $185.62.
Beef packer margins on Thursday were estimated at a negative
$61.15 per head, compared with a negative $60.70 on Wednesday
and a negative $27.90 a week ago, according to HedgersEdge.com.
Investors adjusted positions ahead of the federal
government's monthly cattle on feed report to be released on
Friday at 2 p.m. CST (2000 GMT).
Analysts expect Friday's data to show the number of cattle
placed in feedlots in October increased year-over-year as
less-costly corn improved profits for feedlots.
"We really sold off hard the last couple days. You usually
see people lighten up ahead of a big report," Turner said.
Also on Friday, USDA will simultaneously issue its monthly
cold storage report. The data will include total October beef
and pork inventories.
Live cattle December finished 0.400 cent per lb
higher at 131.450 cents. February closed up 0.400 cent
at 132.350 cents. It finished above the 100-day moving average
of 131.95 cents.
CME November feeder cattle were guided by the exchange's
feeder cattle index at 164.82 cents. Other feeder cattle
contracts drew support from the higher live cattle market.
November feeder cattle, which will expire on Nov. 22, closed
at 164.800 cents, up 0.225 cent. January ended at
163.375 cents, up 0.625 cent.
CASH PRICE PRESS HOG FUTURES
CME hog futures ended steady to lower, pressured by weaker
cash hog and wholesale pork prices, traders and analysts said.
USDA on Thursday morning reported the average cash hog price
at the closely watched Iowa/Minnesota market at $76.54 per cwt,
down $2.02 from Wednesday.
Thursday morning's wholesale pork price was down 56 cents
from Wednesday to $89.33 per cwt, USDA said.
Wholesale pork prices have declined in recent days as more
product enters the meat pipeline due to ample seasonal supplies
at heavier weights.
Pork packer margins remain firmly in the black as processors
pay less for hogs.
HedgersEdge.com calculated pork packer margins on Thursday
at a positive $15.95 head, compared with a positive $16.90 on
Wednesday and a positive $16.30 a week ago.
December hog futures eased from a session high, weighed by
its premium to CME's hog index, which was at 82.83 cents, a
trader said. December hogs settled unchanged at 86.250
February hogs closed down 0.350 cent at 90.575
cents. It finished below the 40-day and 10-day moving averages
of 90.63 and 90.76 cents, respectively.
(Editing by Bob Burgdorfer)