By Theopolis Waters
CHICAGO, Jan 23 (Reuters) – Chicago Mercantile Exchange live cattle futures slumped on Friday, with nearby contracts down the three-cents per pound price limit, ahead of the U.S. Department of Agriculture’s monthly Cattle-On-Feed report at 2 p.m. CST.
Analysts expected the report to show a decline in the number of cattle placed in feedlots last month.
February and April live cattle finished at 150.350 cents and 148.800 cents per lb., respectively. Because of Friday’s limit-down move, trading limits will be expanded to 4.500 cents on Monday.
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Fund liquidation and sell stops further weighed on CME live cattle.
The dollar’s surge, which could hurt U.S. meat exports, discouraged market bulls who were also sidelined by the lack of supportive fundamental direction.
Friday morning’s choice wholesale beef price fell $1.77 per hundredweight (cwt) from Thursday to $253.88. Select rose 54 cents to $249.43, USDA said.
So far, slaughter-ready or cash cattle in the U.S. Plains fetched $158 to $160 per cwt, down from mostly $162 to $164.50 last week, feedlot sources said.
Feedlots and packers may be waiting for USDA’s cattle report results before buying remaining livestock, a trader said.
CME feeder cattle finished with most contracts down the 4.500-cents limit on firm corn prices and limit-down live cattle futures.
January closed 2.275 cents per lb lower at 213.700 cents. March and April ended limit down at 201.825 cents and 202.550 cents. Feeder cattle’s trading limit will be expanded to 6.750 cents on Monday.
HOGS AGAIN HIT TWO-YEAR LOW
CME lean hogs sank to a two-year low for a fourth consecutive day on Friday as cash and wholesale pork prices struggled, traders said.
February closed 2.300 cents per lb. lower at 69.300 cents, and April fell 2.225 cents to 70.650 cents.
Cash hogs in the Midwest on Friday traded steady to $1 per cwt. lower from Thursday, according to regional hog dealers.
USDA data showed the morning’s wholesale pork price had dropped 99 cents per cwt from Thursday to $83.71.
Hogs and pork are readily available due to affordable feed and moderate winter temperatures that have allowed animals to remain heavy compared with last year, an analyst said.
Hog futures were further pressured by sell stops and the steep drop in live cattle futures
