CHICAGO, Oct 21 (Reuters) – Chicago Mercantile Exchange live cattle futures finished mixed on Wednesday stirred by profit-taking and positioning before the sale of cash cattle as early as Thursday, traders said.
Spot October closed 0.275 cent per lb lower at 139.975, and December down 0.025 cent to 143.150. February and April closed up 0.275 cent to 144.300 and 143.175 cents, respectively.
On Wednesday, market-ready, or cash, cattle bids surfaced in Texas at $137 per cwt against $140 to $142 asking prices there and in Kansas, feedlot sources said. Last week, cash cattle in the U.S. Plains sold at $134 to $137.
Read Also
Second Harvest redirecting surplus food to those in need
Second Harvest, billed as Canada’s largest food rescuer, was on hand at Ag in Motion in Langham, Saskatchewan, from July 15 to 17 to connect with farmers and raise awareness of their presence on the Prairies.
Packers will likely pay more for supplies than last week due to pre-booked retail orders for meat to feature beginning in November, traders and analysts said.
Wednesday morning’s wholesale choice beef price climbed $1.82 cents per cwt from Tuesday to $217.20 per cwt. Select cuts were up 16 cents to $210.52, the U.S. Department of Agriculture said.
Packers will avoid paying more than they have to for cattle after sharply higher prices over the past two weeks cut their margins.
USDA will issue the monthly cold storage report on Thursday at 2 p.m. CDT (1900 GMT), which will include September beef and pork inventories.
A few analysts, on average, estimated last month’s cold storage total beef stocks at 486.9 mln lbs, and pork at 683.8 mln lbs.
CME feeder cattle futures mimicked the mixed live cattle market.
October feeder cattle ended down 0.625 cent per lb to 194.250 cents, and November 1.025 cents to 191.425 cents. January finished 0.400 cent higher at 184.775 cents and March up 0.175 cent to 180.950.
HIGHER HOG FUTURES SETTLEMENT
Profit-taking and uneasiness about near-term market fundamentals weighed on CME lean hogs, traders said.
December finished 0.825 cents per lb lower at 67.025 cents, and February down 0.150 cent to 68.700 cents.
Investors were surprised that wholesale pork prices had not increased as much as anticipated, given the shortage of product after at least one major packing plant shutdown for repairs on Tuesday.
Grocers have most of the product they need to finish out October Pork Month, with additional tonnage ahead as supplies build seasonally, a trader said.
Wednesday morning’s wholesale pork price was at $88.94 per cwt, up 39 cents from Tuesday, USDA said.
The morning’s cash hog prices in the Midwest were steady with Tuesday’s sales, regional hog dealers said.
