Chicago Mercantile Exchange (CME) live cattle futures closed mostly weak as traders awaited Friday’s U.S. Department of Agriculture monthly cattle-on-feed report at 2 p.m. CT, said traders and analysts.
Analysts expect the data to show the number of cattle placed in feedlots last month fell from a year ago as high-priced corn reduced demand for younger cattle.
Lower prices for cattle in the cash market and tepid wholesale beef demand weighed on futures.
Spot April live cattle closed up 0.15 cent/lb. to 126.35 cents (all figures US$).
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U.S. livestock: Cattle futures come down from highs
Cattle futures on the Chicago Mercantile Exchange were weaker on Monday, coming down from recent highs.
Most-actively traded June ended at 121.3 cents, down 0.075 cent. August ended at 121.625 cents, down 0.15 cent.
“April priced in this week’s cash trade even though it fell short of what people were looking for,” a trader said.
Slaughter-ready cattle on a cash-basis in Nebraska on Friday traded at $126 per hundredweight (cwt), $1.50 to $2 lower than last week, said feedlot sources. Cattle in Texas on Monday fetched $125, down $2 from a week ago.
Packers in Kansas raised cash bids to $126 per cwt from $125 against $128 asking prices, a feedlot manager said.
Cash price optimism faded after futures took back gains made on Tuesday and Wednesday. Unusually wet and cold weather hurt demand for spring grilling, which kept a lid on wholesale beef prices.
USDA Friday morning reported the average wholesale choice beef price at $190.28/cwt, down 51 cents from Thursday. Select cuts rose $1.07 to $185.32.
Lower deferred-month CME live cattle futures and firmer corn prices pressured feeder cattle futures for a third straight session.
Spot April settled down 0.425 cent/lb. to 134.025 cents. It posted a fresh contract low of 133.525 cents in after-hours trading.
Most-actively traded May closed at 139.2 cents, 0.85 cent lower and made a new contract low of 138.375 cents.
Hogs sag with cash, pork prices
CME hog futures fell on profit taking led by lower cash hog and wholesale pork prices, analysts and traders said.
“Packers cut bids after securing hogs for this week and as grocers bought hand-to-mouth until we get a break in weather for grilling,” a trader said.
Hog futures slipped beneath key technical support, which triggered fund selling and sell stops.
CME June hogs settled 0.4 cent/lb. lower at 90.2 cents/lb. It drifted below where the 20-day and 40-day moving averages converge at 90.45 cents.
July finished at 90.275 cents, 0.525 cent lower. It fell below the 40-day and 20-day moving averages of 90.61 and 90.47 cents, respectively.
Government data Friday morning showed the average hog price in the western Midwest market fell $1.05/cwt from Thursday to $77.06.
Friday morning’s USDA mandatory wholesale pork price, calculated on a plant-delivered basis, was at $83.15/cwt, down 83 cents from Thursday.
The government last Friday replaced its voluntary pork price data with the new mandatory reports.
— Theopolis Waters writes for Reuters from Chicago.
