Chicago | Reuters — Chicago Mercantile Exchange live cattle futures ended mostly firm on Friday, underpinned by tight supplies and as harsh winter weather in recent weeks lowered cattle slaughter weights and limited beef production, traders said.
Live cattle futures prices remained bound in a recent trading range as cash cattle prices at Plains feedlot markets were mixed in light trade compared with last week’s sales.
However, lower feeder cattle futures amid rising feed corn prices capped gains in the live cattle market.
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February live cattle ended 0.175 cent higher at 157.725 cents/lb. while April futures were down 0.025 cent at 160.9 cents (all figures US$). March feeder cattle futures fell 1.4 cents, to 182.875 cents/lb.
CME lean hog futures ended mixed on Friday, as pressure from weak cash hog prices and ample supplies was offset by a sharply higher wholesale pork carcass cutout value.
The U.S. Department of Agriculture said the pork cutout jumped to $81.64/cwt on Friday, up $2.31 from a near two-year low posted the prior day.
Pork packer margins remained weak at an estimated $2 per head on Friday, down from $7.50 a week ago, according to livestock marketing advisory service HedgersEdge.com.
CME February lean hogs ended 0.1 cent lower at 78.65 cents/lb. while April futures were up 0.1 cent at 87.275 cents/lb. Deferred contracts were 0.275 cent lower to 0.65 higher.
— Karl Plume reports on agriculture and ag commodities for Reuters from Chicago.
