By Meredith Davis
CHICAGO, Nov 3 (Reuters) – Chicago Mercantile Exchange live cattle ended higher on Monday as early demand for cash cattle was expected to boost cash prices, and lower slaughter numbers also lent support, traders said.
Some packers were short slaughter supplies after last week’s cash trade, which was expected to support steady to higher prices in the cash market this week.
U.S. Department of Agriculture data showed an estimated slaughter at 113,000 head on Monday, 4,000 less than last year as demand for U.S. beef remains robust, traders said.
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“You can make the cattle as fat as you want, but if the kill continues to drop off, it is not going to make enough beef,” said Domenic Varricchio, a commodities broker, at Schwieterman Inc.
The CME December ended at 167.050 cents per pound, up 1.000 cent. CME February ended at 167.275 cents per lb., up 1.175 cent.
Last week, cash cattle traded at $168 per hundredweight (cwt.), down $2 from the previous week’s record high of $170 per cwt. There was talk of a packer already offering and additional $2 to this week’s highest cash price.
Monday morning’s choice wholesale beef price rose 12 cents per cwt. from Friday to $251.32. Select cuts rose 56 cents to $239.19, the U.S. Department of Agriculture said.
CME feeder cattle followed the live cattle market higher. November feeder cattle ended up 1.425 cent at 235.575 cents per lb.
HOGS EDGE HIGHER
CME lean hogs closed higher, supported by technical buying, while continued soft cash hog prices limited futures’ gains, traders said.
CME December traded at a discount to the CME lean hog index of 91.38 cents, which also lent some support.
USDA data showed Monday afternoon’s wholesale pork price up 43 cents per cwt. from Friday at $97.94, as a $5.07 rise in rib values helped to boost the wholesale value.
Cash hog prices around the U.S. Midwest were steady to $1 lower early as most packers had their slaughter schedules already filled for the week, which led to weak demand in the cash market.
December ended 0.825 cent per lb. higher at 88.025 cents, and February was 0.950 cent higher at 89.000.
