By Theopolis Waters
CHICAGO, May 22 (Reuters) – Chicago Mercantile Exchange hogs closed lower on Thursday, pressured by weaker prices for market-ready cash hogs pegged to plant closures during the U.S. Memorial Day holiday, trader said.
They also cited the relapse in wholesale pork prices. Grocers bought all the product they need to accommodate grilling demand over the three-day holiday weekend.
Thursday morning’s hog price in the Iowa/Minnesota market dropped $2.21 per hundredweight (cwt) from Wednesday to $107.39, the U.S. Department of Agriculture said.
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Separate USDA data showed the morning’s wholesale pork price fell $1.10 per cwt. from Wednesday to $113.82.
Fund liquidation and futures’ premium to CME’s hog index, at 111.49 cents, exerted more pressure on hog contracts.
The government’s monthly cold storage report will be issued today at 2 p.m. CDT and will include April total pork and beef stocks.
CME hogs may trade mixed on Friday as investors even up positions before the long holiday weekend.
June closed 2.325 cents lower at 117.600, and July down 1.500 cents at 125.325.
CATTLE DOWN WITH CASH
CME live cattle futures posted losses, weighed down by lower prices for cash cattle, traders said.
Cash cattle in Texas and Kansas traded at $144 per cwt., down $1 from last week, feedlot sources said. They reported sales of similar cattle in Nebraska at $145 to $146.50, compared to mostly $147 a week ago.
Packers bought cattle for the holiday-shortened workweek while bracing for an anticipated seasonal pickup in supplies, traders and analysts said.
Fund selling and sell stops applied more pressure on futures. The bright spot during Thursday’s session was rising demand for beef for post-Memorial Day cookouts.
The morning’s wholesale choice beef price rose 73 cents per cwt. from Wednesday to $231.89. Select cuts climbed $1.33 to $221.42, based on USDA data.
“Futures could be in for a short-covering rebound on Friday as some of these guys get out of the market before the holiday,” a trader said.
June ended at 137.600 cents, 0.675 cent lower, and August down 0.950 cent at 138.650 cents.
CME feeder cattle bowed to profit-taking and live cattle market losses.
May, which expired at noon CDT, settled down 0.125 cent to 189.075 cents. August ended 1.150 cents lower at 195.375 cents, and September 1.000 cent lower at 196.550.
