Chicago | Reuters — Chicago Mercantile Exchange live cattle futures moved higher on Thursday, supported by cash cattle prices in the northern U.S. Plains, analysts said.
“We’ve been under some pressure recently, but the cash trade was still at $138 to $140,” said Doug Houghton, technical analyst at Brock Capital Management (all figures US$). “That’s premium to where the February has been trading, so that’s supportive of the nearby.”
CME February live cattle futures settled 0.1 cent higher at 137.35 cents/lb., after dropping near its 100-day moving average earlier in the session.
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CME March feeder cattle futures added 1.1 cents to 167.275 cents/lb.
Cash cattle prices were steady-to-softer across the Great Plains, with prices in Nebraska ranging $140-$138/cwt.
Cattle slaughter rates have lagged much of the week, with 113,000 head processed on Thursday, 4,000 behind last week and 6,000 head behind the same week last year.
Wholesale beef prices continued its weekly climb, with select cuts firming $1.03, to $260.64/cwt, while choice cuts gained $1.63, to $268.56/cwt.
Lean hog futures firmed alongside the cash index, underpinned by tighter supplies of market-ready hogs.
CME February hogs added 0.675 cents to 82.95 cents/lb.
“We have some fairly significantly smaller hog supplies ahead, based on the inventory numbers,” Houghton said.
The Lean Hog Index, a two-day weighted average of cash hog prices, firmed $1.12, to $73.87/cwt.
Daily hog slaughter of 465,000 head lagged year-ago rates by 29,000 head, USDA said.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
