Chicago | Reuters — Chicago Mercantile Exchange live cattle futures eased on Friday, ending the week slightly lower as cash trade eased, though the cattle market continues to trade mostly sideways, analysts said.
“The market’s basically saying — we’ve got stable trade right now for a couple months,” said Rich Nelson, chief strategist at Allendale Inc. “We’re all waiting for the next drop off in supply which is not gonna be lined up until the fourth quarter, or into the first half of next year.”
The most-active October live cattle eased 0.675 cents to 180.15 cents/lb., while October feeder cattle lost 1.375 cents, to 254.65 cents/lb. (all figures US$).
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For the week, October live cattle eased 0.57 per cent, while October feeder cattle added 0.27 per cent.
Cash cattle traded $2 lower in the northern Plains, around $182/cwt, while the southern Plains was steady to $1 lower at $178-$179/cwt.
Beef packers are set to slaughter 629,000 head this week, 13,000 fewer than the same period a year ago, the U.S. Department of Agriculture said.
Boxed beef prices firmed, with choice cuts adding 70 cents, to $314.49/cwt, while select cuts gained $1.04, to $290.29/cwt, USDA said.
Meanwhile CME lean hog futures added, as traders watch for signs of increased demand, while a seasonal increase in hog supplies added pressure.
“October is National Pork Month and procurement for that starts really in the first week of September,” said Nelson. “We’re still consistent on the lower downtrend for cash markets, so we have not yet seen that procurement start.”
The most-active October lean hog futures inched up 0.5 cent, to 83.05 cents/lb.
For the week, October hogs gained 4.04 per cent.
Pork processors were on track to slaughter 2.39 million head, up 18,000 from the same period last year, USDA said.
The CME’s Lean Hog Index, a two-day weighted average of cash prices, last fell to 89.26 cents/lb., its lowest since June 19.
Wholesale pork carcass cutout added $1.48, to $93.70/cwt.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
