CHICAGO, Dec 17 (Reuters) – Chicago Mercantile Exchange live cattle futures on Thursday slid to their lowest level in three years, pressured by more losses price-wise for unsold cash cattle, traders said.
Spot December ended down 2.825 cents per lb to 117.150 cents, and made a new contract low of 116.975. February finished 2.450 cents lower at 122.525, after posting a fresh low of 121.975 cents
On Thursday morning, market-ready, or cash, cattle in Nebraska sold at $115 to $117 per cwt, down $2 to $4 from a week there, said feedlot sources.
Earlier this week, Texas and Kansas cash cattle brought $117 to $118 per cwt, $1 to $2 lower than the week before, according to the feedlot sources.
Read Also
Alberta Crop Report: Rains in the south, dryness in the north
Rain fell onto the southern half of Alberta last week, while hot and dry conditions persisted in the northern half, according to the province’s crop report released on July 18.
Processors pushed back against raising cash bids ahead of reduced plant operations over the Christmas and New Year’s holidays.
Lackluster wholesale beef demand, more cattle for sale and futures’ drop this week by more than 3 percent further weighed on cash returns.
Thursday morning’s wholesale choice beef price shed 56 cents per cwt from Wednesday to $196.34. Select cuts were up 30 cents to $185.21, based on U.S. Department of Agriculture data.
Short-covering and bargain hunting at times lifted CME live cattle contracts from session lows.
Some investors adjusted positions ahead of USDA’s monthly Cattle-On-Feed report on Friday.
Live cattle futures’ selloff dropped CME feeder cattle to a two-year low for a fourth consecutive session.
January feeders finished 3.450 cents per lb lower at 144.250, and marked a new low of 143.200 cents.
CME lean hogs slumped after plentiful supplies, as packers prepare for the Christmas holiday-shortened work week, pulled cash and wholesale pork prices lower, traders said.
Spot February closed 2.125 cents per lb lower at 55.775 cents, and April down 2.200 cents to 61.525 cents.
The USDA quoted Thursday morning’s average cash hog price in Iowa/Minnesota at $50.83 per cwt, down 48 cents from Wednesday.
The morning’s wholesale pork price declined 49 cents from Wednesday to $72.77, led by $6.11 lower pork belly values, the USDA said.
Because beef is a competing meat, long liquidation in the exchange’s live cattle market spilled over into the hog sector.
“Cattle is kind of depressing. It keeps going down like there’s nothing stopping it,” said an Ohio dealer.
