Chicago | Reuters — U.S. livestock futures closed mixed on Monday, with live cattle rising on higher-than-expected cash cattle trades and lean hogs falling on expectations of rising supplies and worries about export demand, traders said.
Live cattle futures rose after fed cattle traded late Friday in Texas and Kansas at $111/cwt, which was $2 lower than the previous week but still well above bids quoted earlier that day at $108 (all figures US$).
“That (price) was better than the trade was expecting,” said Rich Nelson, chief strategist with Allendale Inc. “We are putting some distance between the year’s low, which was $106 two weeks ago,” Nelson said.
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CME August live cattle closed Monday up 2.375 cents at 106.925 cents/lb. while October rose 1.275 cents to 108.65 cents.
CME August feeder cattle futures settled up 1.65 cents at 152.375 cents/lb. and September feeders rose 1.375 cents at 152.45 cents.
Lean hog futures fell on technical selling following a two-session bounce from contract lows set Wednesday.
Most-active CME October hogs settled down 1.3 cents at 54 cents/lb. while August hogs fell 0.95 cent at 69.2 cents.
Fears hung over the market that trade tensions with China and Mexico could curb export demand for U.S. pork.
“Big-picture issues are (that) record supplies are ahead in the fourth quarter, and the market doesn’t know how to deal with that — as well as the trade issues,” Nelson said.
— Julie Ingwersen is a Reuters commodities correspondent in Chicago.
