CHICAGO, Feb 29 (Reuters) – Chicago Mercantile Exchange live cattle futures closed mixed on Monday, helped by last Friday’s steady-to-better cash prices but pressured by profit-taking on the last trading day of the month, traders said.
The February contract, which expired on Monday at noon CST (1800 GMT), closed up 1.950 cents per lb at 139.500 cents.
April, the new spot month, ended down 0.025 cent per lb at 136.975 cents and June finished up 0.225 cent at 126.175 cents.
Market participants await the sale of market-ready, or cash, cattle later this week. Packers last week paid $133 to $137 per cwt, steady to up $3 from the prior week.
Read Also
New wild pig website launches in Canada
A new website has joined the fight against invasive wild pigs in Canada, aiming to offer tools, information and resources to educate the public and offer them a way to report wild pig sightings.
Last week’s cash prices benefited from tight supplies and the recent upswing in wholesale beef values, traders said.
They said some processors this week will curb slaughters to recover lost margins and sustain brisk wholesale beef demand.
The morning’s wholesale choice beef price advanced 18 cents per cwt from Friday to $217.85. Select cuts rose 93 cents to $212.92, the U.S. Department of Agriculture said.
Weak back-month live cattle futures pressured CME’s March feeder cattle contract, with other months supported by firm cash feeder cattle prices.
March closed 0.500 cent per lb lower at 158.150 cents. April ended up 0.225 cent to 159.075 cents and May finished 0.650 cent higher at 158.050 cents.
Profit taking and a potential cash price top pressured CME lean hogs, traders said.
April closed 0.875 cent per lb lower at 69.975 cents, and May finished down 0.325 cent per lb to 76.600.
Monday morning’s average cash hog price in the western Midwest fell $2.49 per cwt from Friday in light volume to $64.00, the USDA said.
Late last week’s cash price slump suggests they probably peaked at that time with adequate supplies, said James Burns, president of JBS Trading Co.
Closely watched was Monday’s estimated 404,000 head kill. It was down 33,000 from last week and implies a plant was offline for maintenance or processors reduced slaughters to improve their profits.
“Packers get a bit nervous and consider cutting kills when their margins approach $10 after being over $40 a few months ago,” a Midwest hog dealer said.
HedgersEdge.com estimated average pork packer margins for Monday at $17.75 per head, up from $14.40 on Friday and down $18.55 last week.
