CHICAGO, Ill. (Reuters) — Chicago Mercantile Exchange live cattle fell by the three cents per pound price limit Friday on profit-taking and lower cash prices, traders said.
April and June closed at 157.800 cents and 149.000 cents, respectively. CME’s live cattle trading limit will be expanded to 4.500 cents on Monday following futures’ limit-down settlement on Friday.
Market-ready or cash cattle in Kansas and Texas moved at $160 to $161 per hundredweight, $2 to $3 lower than earlier this week and down $2 from last week, said industry sources.
This week’s overall cash trade in the U.S. Plains was generally $160 to $163 per cwt, compared with $163 to $165.50 last week, they said.
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Packers kept a lid on cash prices by trimming kills and periodically raising wholesale beef costs, which improved their margins.
“Until you see the true expression of the seasonal increase in beef demand, I don’t really know that the market can really catch in a significant way,” said Cassandra Fish, author of The Beef blog.
Friday morning’s choice wholesale beef price dropped $2.69 cents per cwt. from Thursday to $257.69. Select cuts were up 48 cents to $251.45, the U.S. Department of Agriculture said.
The day’s beef packer margins were a positive $10.55 per head, compared with a positive $10.70 on Thursday and a negative $35.70 last week, according to HedgersEdge.com.
June and August losses mounted after they drifted beneath the 100-day moving average of 149.75 cents and $147.71 cents, which ignited fund liquidation.
CME feeder cattle were pressured by technical selling, sell stops and live cattle futures’ tumble.
April closed 2.800 cents per lb. lower at 213.000 cents, and May down 4.475 cents to 208.525 cents.
CME lean hogs closed moderately lower, weighed on by softer cash prices as processors worked to protect their slim margins, traders said.
May closed 0.500 cent per lb. lower at 70.525 cents, and June down 0.100 cent to 76.275 cents.
The morning’s cash prices for hogs in the western Midwest sagged $1.36 per cwt. to $61.37 from Thursday, based on the USDA data.
HedgersEdge.com calculated the day’s pork packer margins at a positive 75 cents per head, compared with a positive $1.85 on Thursday.
CME lean hogs’ premiums to current cash prices and CME’s hog index for April 15 at 62.98 cents kept futures on the defensive, traders and analysts said.
