By Theopolis Waters
CHICAGO, Nov 20 (Reuters) – Chicago Mercantile Exchange live cattle futures lost modest ground on Friday, amid caution ahead of Friday afternoon’s cash prices and the U.S. Department of Agriculture’s monthly Cattle-On-Feed report, traders said.
Analysts expect the report to show fewer cattle placed into feedlots last month than a year ago.
Spot December finished 0.200 cent per pound lower at 129.700 cents, and February was down 0.025 cent at 132.025 cents.
Packers bid $126 to $127 per cwt for market-ready, or cash, cattle in Kansas and $122 to $123 in Nebraska, against sellers in both states who priced animals over $131, feedlot sources said.
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Last week, cash cattle in the U.S. Plains brought $126 to $129 per cwt.
Southern feedlots are holding cattle that weigh less than cattle in the north, a trader said.
He added that southern Plains processors might need inventory despite at least one fewer day of production during the Thanksgiving holiday.
Winter-like weather bearing down on the Midwest could create muddy conditions in feedyards while snarling transportation of animals to packing plants.
And beef demand has taken a back seat to “turkey day” promotions for the coming U.S. holiday.
Persistent market volatility and cash price uncertainty have put investors on the defensive.
“You talk to a lot of people that have been in the know forever, and they’re confused,” said KIS Futures Inc Vice-President Lane Broadbent.
Technical buying and short covering lifted CME feeder cattle futures, with January ending 1.200 cents per lb higher at 163.650.
HOG FUTURES RISE AGAIN
CME lean hogs gained for a fourth straight session, fueled by short covering and technical buying, traders said.
Spot December finished 2.050 cents per lb. higher at 57.450 cents, after breaking through the 20-day moving average of 56.81 cents. February closed 1.600 cents higher at 58.325 cents.
Futures buyers ignored plentiful seasonal supplies that weakened the morning’s cash and wholesale pork values.
Packers are on pace to process 2.4 million hogs, including USDA’s estimated 215,000-head Saturday kill. Overall, that will be 12,000 more than last week when some plants were dark in observance of the Veterans Day holiday.
Friday morning’s wholesale pork price dipped 39 cents per cwt from Thursday to $74.00, the USDA said.
Separate government data showed cash hog prices in the Iowa-Minnesota market on Friday morning shed 23 cents per cwt from Thursday to $50.86.
