Chicago | Reuters — Feeder cattle futures on the Chicago Mercantile Exchange firmed on Friday, supported by lower feed grain costs and resilient live cattle futures, traders said.
“The market has held together well, so there’s optimism there. Then you’ve got the grain market down double digits today, and down the day before,” said Altin Kalo, economist at Steiner Consulting Group. “Cash prices have been pretty resilient. Usually this time of year you see them start to slip a little bit.”
Most-active CME January feeder cattle added 1.375 cents, to 182.45 cents/lb. (all figures US$). For the week, the contract added 2.33 per cent.
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CME benchmark February live cattle gained 0.45 cent to 155.875 cents/lb. For the week, the contract added 0.48 per cent.
The spot December contract firmed 0.3 cent to 153.35 cents/lb.
Cash cattle traded steady-to-firmer in the northern U.S. Plains, as high as $159/cwt, while the southern Plains traded steady at $155/cwt., the U.S. Department of Agriculture said.
“You look at the feedlot numbers, and they’re lower, so there’s less cattle out there. The feedlot operators are going to get more current. I think the days of running big kills are behind us.”
Boxed beef prices dropped on Friday, with choice cuts losing $3.64, to $249.93/cwt, while select cuts lost 44 cents, to $224.56/cwt, USDA said.
Meanwhile, CME February lean hogs added 1.225 cents, to 90.425 cents/lb. For the week, February hogs gained 2.18 per cent.
“The cash hog market has been fairly resilient. Hog weights have been light, telling you the producer is very current. And the ham market hasn’t fallen out of bed yet,” said Kalo.
Nearby December hogs eased 0.7 cent to 82.425 cents/lb.
The CME’s lean hog index, a two-day weighted average of cash hog prices, fell 65 cents, to $83.24/cwt.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
