CHICAGO, March 24 (Reuters) – Chicago Mercantile Exchange live cattle futures on Thursday settled higher for the first time in six sessions, helped by short-covering before the Easter holiday weekend, traders said.
April live cattle ended 0.400 cent per lb higher at 135.850, and June finished up 0.275 cent at 125.375.
The April contract led late-session advances, supported by its discount to preliminary prices for market-ready, or cash, cattle in Texas at $136 per cwt. That was $3 lower than last week, traders and feedlot sources said.
Investors await the bulk of this week’s cash sales, with bids elsewhere in Texas and the U.S. Plains at $135 to $136 per cwt against asking prices of $140 to $141.
Read Also
Entomologist tests trap crops and marigolds to repel flea beetles at an Ag in Motion
An Agriculture Canada entomologist is experimenting with trap crops and marigolds at an Ag in Motion demonstration cropplot
The cash market last week peaked seasonally and could grind lower in the near term, said Archer Financial Services broker Dennis Smith.
Deteriorating packer margins, soft wholesale beef demand and uneasiness about cash prices next week, as packers buy for the Easter Monday holiday-shortened workweek, capped Thursday’s gains, traders and analysts said.
Some cattle may change hands by late Thursday because a few plants will be closed on Good Friday. But most processors may resist buying cattle until late on Friday because most plants will be closed on Easter Monday.
HedgersEdge.com estimated that the average beef packer margin on Thursday was a negative $16.55 per head, down from a negative $2.20 on Wednesday and a positive $50.70 a week ago.
The morning’s wholesale choice beef price fell 65 cents per cwt from Wednesday to $225.53. Select cuts were 71 cents higher at $218.86, the U.S. Department of Agriculture said.
CME feeder cattle’s spot March contract, which expired at noon CDT (1700 GMT), ended down 0.425 cent per lb to 160.975 cents.
Both April, the new lead month, and May finished up 0.275 cent at 155.825 and 155.025 cents, respectively, on late-day live cattle futures buying.
The morning’s wholesale pork price drop and jitters before Friday’s USDA quarterly hog report pulled CME lean hogs lower, traders said.
Analysts, on average, expected a marginal increase in the U.S. hog herd during the December-through-February quarter versus a year ago.
April closed down 0.050 cent per lb at 69.625 cents, May ended 1.850 cents lower at 76.650 cents and June finished 1.650 cents per lb lower at 81.125 cents.
