CHICAGO, April 19 (Reuters) – Chicago Mercantile Exchange
live cattle futures lost ground again on Tuesday, pressured by
more long liquidation following the morning’s wholesale beef
price setback, said traders.
April live cattle closed 1.150 cents per lb lower at
127.325 cents, and June ended down 0.600 cent per lb at
118.575 cents.
On Wednesday, live cattle contracts will return to their
normal 3 cents per lb daily price limit after failing to settle
at a newly expanded 4.5 cents limit on Tuesday.
The morning’s wholesale choice beef price was at $223.55
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dropped $1.33 to 214.65 cents, the U.S. Department of
Agriculture said.
“There is a lot of protein out there that is going to make
it a little more challenging for beef demand moving forward. But
we continue to hear there is a lot of grilling feature activity
coming online in the coming months,” said David Maloni, chief
commodity strategist with the American Restaurant Association
Inc.
Slumping futures prices, a potential slowdown in wholesale
beef demand and almost 5,000 more cattle for sale than last week
may weigh on cash prices later this week, said analysts and
traders.
Last week, packers paid $133 to $136 per cwt for
market-ready, or cash, cattle.
Weaker live cattle futures and sharply lower cash feeder
cattle prices pressured CME feeder cattle contracts. April
closed down 0.400 cent per lb at 150.175 cents. An
expanded limit of 6.750 cents will return to 4.5 cents on
Wednesday.
Steady to firm cash prices and higher wholesale pork values
pushed up CME lean hogs, traders said.
Fund buying developed after May and June surpassed their
respective 20-day and 100-day moving averages of 76.14 and 78.91
cents.
Thinly traded May ended 1.350 cents per lb higher at
76.200 cents. Most-active June finished up 1.100 cents
at 78.925.
Cash hogs in the Midwest on Tuesday morning sold steady to
$1 per cwt higher, supported by profitable packer margins and
increased pork demand, said regional hog dealers.
Tuesday morning’s wholesale pork price, or cutout, was 57
Seasonal pork cutout price gains may be tempered as
production trends above year ago levels in the coming weeks
based on recent USDA data, said Maloni.
