By Theopolis Waters
CHICAGO, May 22 (Reuters) – Chicago Mercantile Exchange nearby live cattle closed moderately lower Friday on profit-taking and in response to the U.S. Department of Agriculture’s monthly Cattle-On-Feed reporter earlier in the day, traders said.
October and December closed higher
The number of cattle put into U.S. feedlots in April unexpectedly slowed compared with the same month last year.
“It’s a bullish report but not enough to get everyone excited on a Friday before a three-day weekend,” said University of Missouri economist Ron Plain.
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Friday afternoon’s Choice wholesale beef price slid $1.97 per hundredweight (cwt.) from Thursday to $260.25. Select cuts fell $1.70 to $247.62, the USDA said.
The government’s monthly cold storage report on Friday showed total beef stocks in April at 476.7 million pounds, down one percent from March, but up 18 percent from a year earlier.
Market participants look forward to cash trade next week, when packers buy supplies for the first full week of production after Memorial Day.
This week, market-ready, or cash, cattle in the U.S. Plains traded mostly $159 to $161 per cwt., steady to down $2 from last week, feedlot sources said.
June closed 0.250 cent per lb. lower at 152.125 cents, and August fell 0.200 cent to 150.700 cents.
CME feeder cattle drew support from lower corn prices and firm back-month live cattle futures.
August ended up 1.275 cents at 219.000 cents, and September was 1.175 cents higher at 218.000 cents.
FUNDAMENTALS WEAKEN HOG FUTURES
Softer cash and wholesale pork values pressured CME lean hogs, traders said.
June closed down 0.050 cent per lb. at 83.725 cents, and July 0.125 cent lower at 83.725 cents.
Friday afternoon’s average cash hog price in Iowa/Minnesota dropped 68 cents per cwt. from Thursday to $78.72, the USDA said.
Separate government data quoted the afternoon’s wholesale pork price at $85.58 per cwt., $1.47 lower than on Thursday.
Meatpacking plant closings over the Memorial Day holiday limited the need for hogs, traders and analysts said.
Supermarkets are not expected to purchase more meat until they assess how much moved over the holiday weekend, they said.
Friday’s USDA cold storage report showed total April pork inventories at 699.6 million lb., up four percent from the previous month and up 20 percent from a year earlier.
