By Theopolis Waters
CHICAGO, Nov 20 (Reuters) – Chicago Mercantile Exchange live cattle futures settled mixed Thursday on positioning before this week’s cash prices and Friday’s USDA monthly Cattle-On-Feed report.
Most analysts expect Friday’s report to show October cattle placements declined year-over-year.
December closed down 0.575 cent per pound at 170.250 cents, and February 0.475 cent lower at 171.825 cents. April ended up 0.100 cent at 170.300 cents, and June 0.825 cent higher at 162.000 cents.
Market-ready or cash cattle bids in Kansas surfaced at $167 to $168 per hundredweight (cwt) versus sellers in the state and elsewhere asking more than $173, feedlot sources said. Last week, some cattle topped a record $172.
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
Solid wholesale beef values and less cattle for sale could put a floor beneath cash prices, an analyst said.
Unprofitable margins and plant closures for the Thanksgiving holiday might limit cash spending.
CME feeder cattle ended lower, pressured by sell stops and higher corn prices.
November, which expired at noon CST, settled down 0.125 cent per lb. at 240.425 cents, and January , the new lead contract, 1.525 cents lower at 235.575 cents.
HOGS LOWER
CME lean hogs closed lower Thursday on profit-taking and fund selling that erased Wednesday’s gains, traders said.
December closed down 1.000 cent per pound at 90.775 cents, and February 0.750 cent lower at 90.900 cents.
Anticipation of a weaker trend in cash and wholesale pork prices stirred bear spreads, which consisted of investors who sold the December contract and simultaneously bought back months.
Hog supplies are sufficient and grocers booked enough hams to feature during the Thanksgiving holiday, traders and analysts said.
Slaughter-ready, or cash, hogs in the Midwest traded steady to weak, said regional hog dealers.
The morning’s wholesale pork price was up 49 cents per cwt.from Wednesday to $93.13, the U.S. Department of Agriculture said.
The USDA will issue the monthly cold storage report on Friday at 2 p.m. CST, which will include total October beef and pork inventories.
A few analysts forecast an average October inventory total of 371.1 million lbs for beef and 537.7 million lb. for pork.
