By Theopolis Waters
CHICAGO, Dec 11 (Reuters) – Thinly traded Chicago Mercantile Exchange feeder cattle futures closed down their 3-cents per pound maximum daily price limit Thursday on sell stops and deferred-month live cattle market selling, traders said.
The day’s corn price gains hastened CME feeder cattle losses.
Traders cited the exchange’s slipping feeder cattle index, which reflected lower prices for those animals in local markets.
January and March closed at 228.600 cents and 224.250 cents, respectively.
LIVE CATTLE END WEAKER
Read Also
U.S. grains: Soybean futures jump on hopes for US export demand
Chicago Board of Trade soybean futures jumped on hopes for U.S. export demand on Wednesday, while corn futures rose for a third day to extend a recovery from contract lows, analysts said.
December live cattle closed down 0.075 cent per lb at 162.400 cents, and February off 0.275 cent at 162.575 cents.
On Thursday, market-ready, or cash cattle, sold in Texas at $164 per hundredweight (cwt) compared with roughly $173 two weeks ago, their most recent sales.
Cash cattle bids in Kansas stood at $162 to $164 per cwt. versus up to $170 asking prices. Last week, cash cattle in Kansas and Nebraska sold at $167 to $168.
Unprofitable packer margins and tepid wholesale beef demand could pressure cash returns. And, unexpectedly mild temperatures in the Midwest have allowed cattle to grow more quickly while increasing beef tonnage.
Thursday morning’s choice wholesale beef price shed $1.22 per cwt. from Wednesday to $248.73. Select rose 83 cents to $237.20, the U.S. Department of Agriculture said.
Active short-covering could develop on Friday before the weekend and as participants prepare for what for some will be extended year-end holiday vacations, a trader said.
HOGS CLOSE MOSTLY WEAK
Most CME hog contracts closed down slightly following the morning’s wholesale pork price drop and in anticipation of downward-trending cash prices, traders said.
Early on Thursday, cash hogs in the Midwest traded mostly steady to down 50 cents per cwt., according to regional hog dealers.
USDA data showed the morning’s wholesale pork price sagged $2.11 per cwt. from Wednesday to $90.18, led by the $8.46 plunge in picnic shoulder cuts.
Fewer hogs are needed for slaughter as packing plants prepare to close over the Christmas and New Year’s holidays, traders and analysts said.
Processors lowered pork costs to compete with relatively expensive beef in the coming weeks, they said.
December closed up 0.275 cent per lb. to 87.550 cents, February off 0.200 cent at 84.350 cents and April 0.650 cent lower at 85.700 cents.
