By Theopolis Waters
CHICAGO, Nov 21 (Reuters) – Chicago Mercantile Exchange live cattle futures settled higher on Friday on positioning before this week’s cash prices were established and and the U.S. Department of Agriculture’s monthly Cattle-On-Feed report, traders said.
After trade closed, the report showed October placements at 2.357 million head., down one percent a year earlier, but analysts, on average, had expected a four percent decrease.
The USDA also issued monthly cold storage data, including total October beef and pork stocks.
Frozen beef stocks were 374.868 million pounds, which was more than the 371.1 million that analysts expected.
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Pork stocks were 524,769 million lb., below the 537.7 million lb. that traders expected.
Cash fed cattle trade had yet to establish when the futures market closed. Bids in Kansas were at $168 per hundredweight against asking prices of $173 and more, feedlot sources said.
Last week trade post a new record high of $172.
Fewer cattle for sale and the recent uptick in wholesale beef values may lend support to cash prices.
But packers may need fewer cattle, with plants scheduled to be dark at least one day during the Thanksgiving holiday.
Friday morning’s Choice wholesale beef price was up 26 cents per cwt. from Thursday to $255.65. Select gained 34 cents to $243.33, the USDA said.
December closed up 0.650 cent per lb. at 170.900 cents, and February rose 0.325 cent to 172.150 cents.
CME feeder cattle drew support from live cattle market advances and short-covering.
January closed 0.775 cent per lb. higher at 236.350 cents, and March was up 0.725 cent at 234.450 cents.
HOGS CLOSE WEAK
CME lean hogs ended weaker following lower wholesale pork values and in anticipation of a lower trend in cash prices, traders said.
December closed down 0.125 cent per lb. at 90.650 cents and February at 90.450 cents, down 0.450 cent.
Slaughter-ready hogs in the Midwest traded mostly steady from Thursday with a weak tone, regional dealers said.
The morning’s wholesale pork price was down 74 cents per cwt. from Thursday to $92.88, based on USDA data.
Packers have ample supplies in advance of Thanksgiving, while supermarkets are close to stocking all the hams needed for winter holiday demand.
