By Theopolis Waters
CHICAGO, July 16 (Reuters) – Chicago Mercantile Exchange live cattle futures closed lower for a second day in a row on Thursday, pressured by lackluster wholesale beef demand that could drag down this week’s cash prices, traders said.
August closed 0.525 cent per pound lower at 146.500 cents, and October down 0.800 cent at 149.425 cents.
The U.S. Department of Agriculture reported Thursday afternoon’s wholesale Choice beef price, or cutout, had dropped 99 cents per cwt from Wednesday to $233.95. Select cuts fell $2.89 to $230.82.
“With beef export demand slowing and the cutout continuing to weaken seasonally, end-users are balking at higher prices and sitting on their hands,” said livestock futures trader Dan Norcini.
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U.S. livestock: Cattle futures come down from highs
Cattle futures on the Chicago Mercantile Exchange were weaker on Monday, coming down from recent highs.
Cash cattle bids in the U.S. Plains stood at $146 to $147 per cwt against $153-plus asking prices, feedlot sources said.
Last week, cash cattle sold at $150 to $151.50 per cwt.
CME feeder cattle felt pressure from profit-taking, technical selling and sagging live cattle futures.
August closed 0.850 cent per lb lower at 214.475 cents.
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CME’s August lean hog contract was supported by its discount to the exchange’s latest hog index at 80.59 cents, traders said.
Fund liquidation and worries about building supplies ahead dropped October futures, they said.
August ended 0.700 cent per lb higher at 76.000 cents, and October 0.450 cent lower at 64.525 cents.
The average price of cash hogs in Iowa/Minnesota on Thursday afternoon was at $76.10 per cwt, 66 cents lower than on Wednesday, the USDA said.
Processors have enough inventory for near-term production which, along with sporadic wholesale pork buying, has helped improve their profit margins, a trader said.
HedgersEdge.com calculated pork packer margins for Thursday at a positive $4.50 per head, compared with a positive $1.25 on Wednesday.
USDA data showed the afternoon’s wholesale pork price at $82.65 per cwt, up 10 cents from Wednesday, underpinned by $2.96 higher costs for pork bellies.
