Chicago | Reuters — Chicago Mercantile Exchange live cattle posted modest losses on Thursday in anticipation of possibly lower prices for market-ready, or cash, cattle on Friday, traders said.
Spot-October closed down 0.025 cent/lb. to 142.95 cents, and December 0.375 cent lower at 144.7 (all figures US$).
Cash bids in Nebraska surfaced at $139-$140/cwt against $146 asking prices, said feedlot sources. Sellers in Kansas and Texas also priced cattle at $146 with no bids from packers, they said.
A week ago, U.S. Plains cash cattle traded at $142-$143.50.
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“Packers may have enough cattle after buying a lot of them last week,” a Nebraska feedlot operator said.
Heavyweight cattle and the seasonal slowdown in wholesale beef demand further hurt cash cattle price prospects for this week, traders and analysts said.
Thursday morning’s wholesale choice beef price slipped 26 cents, to $239.21/cwt, from Wednesday. Select cuts shed 34 cents, to $228.36, the U.S. Department of Agriculture said.
Funds trading CME’s livestock markets periodically shifted October long positions further back in a process known as the “roll” by followers of the Standard + Poor’s Goldman Sachs Commodity Index (S+P GSCI).
Thursday was the third of five days for the S+P GSCI roll process.
CME’s September feeder cattle contract benefited from its discount to the exchange’s feeder cattle index for Sept. 9 at 205.54 cents.
October futures were pressured by soft CME live cattle and firm corn prices.
September closed up 0.125 cent to 203.95, and October down 0.075 cent to 198.5.
Hogs ease on supply worries
CME lean hogs ended flat to weak on expectations that increased production this fall will exacerbate already plentiful supplies that have dragged on cash prices, traders said.
Spot October ended down 0.375 cent/lb. to 68.55 cents, December unchanged at 63.55 cents and February closed 0.5 cent lower at 67.6.
The morning’s cash hogs in the Midwest sold mostly 50 cents/cwt lower than on Wednesday, regional hog dealers said.
Retailers booking pork to feature for National Pork Month in October minimized futures losses, traders and analsyts said.
Thursday morning’s wholesale pork price at $86.20/cwt was up 39 cents from Wednesday, supported by higher pork belly and ham values, based on USDA data.
Speculators bought October and December after both contracts approached their respective 10-day moving average support levels of 68.40 cents and 63.33.
— Theopolis Waters reports on livestock futures markets for Reuters from Chicago.
