By Theopolis Waters
CHICAGO, Feb 14 (Reuters) – Chicago Mercantile Exchange live cattle futures turned lower on Friday, pressured by profit taking ahead of the three-day holiday weekend, traders said. The CME will be closed on Monday in observance of the U.S. Presidents Day holiday.
February live cattle closed 0.550 cent per pound lower at 142.600 cents, and April ended at 141.100 cents, down 1.300 cents.
Futures pared early-session gains after accounting for cash cattle prices in Kansas and Texas of $142 per hundredweight, up $1 from last week. Investors await word regarding the cash cattle trade in Nebraska where feedlots held out for more money. Processors were reluctant to spend more than they had to for cattle after wholesale beef prices resumed their downward trend, analysts and traders said.
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Cargill Inc’s beef packing plant in Schuyler, Nebraska, which had been running on a limited basis after a fire last week, was expected to operate fully on Friday, a company spokesman said.
CME feeder cattle felt pressure from live cattle futures selling and firm corn prices.
March ended down 0.250 cent per lb to 170.475 cents after posting a new contract high of 171.375 cents in electronic trading. April finished at 171.350 cents, 0.250 cent lower.
HOGS UP WITH CASH PRICES
CME hogs gained on cash price strength which prompted investors to simultaneously buy back months and sell the spot February contract before it expired at noon CST, traders said.
February hogs settled at 86.525 cents per lb, up 0.175 cent. April, the new lead contract, ended at 96.175 cents, 1.250 cents higher
June finished at 106.125 cents, 1.225 cents higher after hitting a fresh contract high of 106.150 cents.
Friday morning’s average price of hogs in the closely watched Iowa/Minnesota market climbed $2.95 per cwt to $88.34, according to USDA.
Packers hiked cash hog bids to make sure they have supplies into early next week, traders said. Some packing plants on the East Coast that were closed during wintry weather resumed their normal schedule on Friday, they said.
USDA data showed packers processed 425,000 hogs on Friday versus 382,000 on Thursday and 384,000 on Wednesday.
“I hear cash prices are good and the product side of the business could turn around next week when temperatures across the country rise,” a Midwest hog dealer said. Government data on Friday morning showed the wholesale pork price at $93.72 per cwt, down $1.45 from Thursday.
Summer hog contracts reached new highs in anticipation of tighter hog supplies as the Porcine Epidemic Diarrhea virus (PEDv), which is fatal to baby pigs, spread on U.S. hog farms.
