By Theopolis Waters
CHICAGO, May 20 (Reuters) – Live cattle futures on the Chicago Mercantile Exchange finished lower during the regular session on Wednesday, pressured by cash cattle prices that were initially weak, traders said.
But contracts turned higher in after-hours or electronic trading as cash prices improved, they said.
Pit-traded June live cattle closed 0.625 cent per pound lower at 151.350, but in after-hours trading was up 0.625 cent at 152.600 cents.
On Wednesday, cash cattle in Texas sold at $160 per hundredweight (cwt), $1 higher than earlier in the day, but $1 lower than last week, feedlot sources said.
They said Kansas cattle sold at $161 per cwt, steady with last week’s sales. Nebraska feedlots held out for more money.
“Judging by the Southern Plains trade and wet conditions, including pockets of snow in the western part of the state, we’re standing pat for at least $162,” a Nebraska feedlot source said.
Armed with profitable margins, some packers needed inventory despite one fewer day to process cattle because of Monday’s Memorial Day holiday, a trader said.
Still, concern remains about increased supplies ahead and reduced beef demand after the holiday, he said.
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CME’s May feeder cattle contract was supported by its closeness to the exchange’s latest feeder cattle index at 219.85 cents.
The weaker live cattle pit settlement pressured remaining feeder cattle contracts.
May, which will expire on Thursday, closed up 0.375 cent per lb at 219.725 cents. August was 0.450 cent lower at 216.700 cents and September was down 0.725 cent at 215.875 cents.
HOG FUTURES SETTLE HIGHER
CME lean hogs closed higher on short covering in the face of bearish fundamentals, traders said.
Wednesday morning’s average cash hog price in Iowa/Minnesota dropped 87 cents per cwt. from Tuesday to $79.82, according to the USDA.
Separate government data quoted the morning’s wholesale pork price at $86.07 per cwt, down 48 cents from Tuesday.
Packing plant shutdowns during Memorial Day, and some processors snug on inventories through next week, dropped cash prices for a third day in a row, traders and analysts said.
Grocers backed down meat purchases after buying enough to feature over the three-day holiday weakened, they said.
June closed up 0.400 cent per lb at 82.550 cents, and July was 1.175 cents higher at 83.350 cents.
