CHICAGO, April 26 (Reuters) – Chicago Mercantile Exchange live cattle futures settled mostly lower on Friday pressured by profit taking after recent advances, analysts and traders said.
The thinly traded April cattle contract held the lone gain due to higher cash cattle prices. The contract is to expire on April 30. CME live cattle finished up 1.1 percent for the week.
The spot April live cattle closed at 127.850 cents per pound, up 0.250 cent. Most-actively traded June ended at 122.600 cents, down 0.300 cent, and August settled at 123.275 cents, down 0.450 cent.
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“We got the cash price we wanted. But April’s modest reaction to cash and June’s still huge discount to April futures, leaves me baffled,” said Oak Investment Group president Joe Ocrant.
Cash cattle in the southern U.S. Plains on Friday fetched $128 to $128.50 per cwt., up $2 to $2.50 from last week, said feedlot sources. In Nebraska, live-basis cattle sold at $128 to $130 per cwt. versus $126 to $127 a week ago, they said.
Packers were short on inventory forcing them to buy supplies on Friday, a trader said. And more spring-like weather ahead should stoke grilling demand and drive up wholesale beef values, he said.
The U.S. Department of Agriculture on Friday quoted the average wholesale choice beef price, or cutout, at $192.89 per cwt., $1.35 higher than Thursday; select cuts dipped 7 cents to $184.43.
Sagging deferred-month live cattle pulled down CME feeder cattle contracts.
Still, CME feeder cattle closed six percent higher for the week, their biggest weekly gain since 6.4 percent during the week ending Oct. 2, 2011. May futures weekly gain was dramatic because of its huge premium to the April contract that expired on Thursday at 134.025 cents, a trader said.
May feeder cattle closed at 141.800 cents, down 0.400 cent per lb. And August finished 0.975 cent lower at 151.175 cents.
HOGS GAIN ON CASH OPTIMISM
CME hogs rose in anticipation of higher cash hog prices next week, when hog supplies are expected to tighten seasonally, analysts and traders said.
Supermarkets and restaurants could book large meat orders for grilling promotions and Mother’s Day dining, which would be supportive to wholesale pork prices, a trader said.
The average hog price in the most-watched Iowa/Minnesota market was $83.21 per cwt., up 75 cents from Thursday, USDA said.
USDA’s Friday’s mandatory wholesale pork price, calculated on a plant-delivered basis, was $87.71 per cwt., up 38 cents from Thursday.
CME hogs ended 1.3 percent higher for the week, finishing higher for a third week in a row.
CME June hogs settled up 0.700 cent at 92.525 cents per lb. and July hogs closed up 0.725 cent at 92.750 cents.
