Chicago | Reuters — Chicago Mercantile Exchange cattle futures turned lower on profit-taking on Wednesday, even as rising wholesale beef prices and a firming cash market continued to offer support to the market, traders said.
Meanwhile, lean hog futures were mixed on bargain buying and technical trading, as prices slumped amid ongoing pressuring by ample supplies and lower pork prices.
The U.S. Department of Agriculture (USDA) on Wednesday morning said the choice boxed beef cutout was up $1.39 at $295.46 per cwt, while select cuts gained 35 cents to $284.95 per cwt.
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Traders said they expect this week’s prices in the cash market to be higher than last week, followed by strength in the southern U.S. Plains that has given the futures market a boost.
One broker said cash prices firming could extend into next week, amid forecasts for storm systems across parts of the Upper Plains this weekend or next week, which could impact cattle feeding regions.
The USDA quoted pork carcass cutout value on Wednesday at $83.56 per cwt, down $2.67 from the previous day.
Stronger-than-anticipated hog slaughter rates this week could keep pressure on the pork market, traders said.
While beef packer margins remained in the red, pork packer margins were a positive $34.25 per hog on Wednesday – down $11.05 per head from Tuesday, according to livestock marketing advisory service HedgersEdge.com LLC.
April live cattle LCJ24 ended 1.275 cents lower at 184.800 cents per pound. March feeder cattle FCH24 settled down 1.125 cents at 245.550 cents per pound.
CME benchmark April lean hog futures LHJ24 settled down 0.150 cent at 81.100 cents per pound.
