By Theopolis Waters
CHICAGO, Aug 14 (Reuters) – Chicago Mercantile Exchange hogs rose for a third consecutive session driven by futures’ discount to cash hog prices, traders and analysts said
CME spot-August hogs followed the exchange’s hog index at 102.23 cents into the spot-month expiration at noon CDT (1600 GMT). The contract closed at 102.425 cents per lb, or up 0.625 cents
Most-actively traded October led advances due to its sizable discount to CME’s hog index. That contract settled 1.625 cents higher at 88.150 cents
December finished at 84.675 cents, 1.425 cents higher
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“I’m actually surprised that October futures held up given the likelihood of a seasonal increase in hog numbers pressuring cash prices,” Linn Group analyst John Ginzel said
Hog numbers are expected to rise as cooler weather heading into the fall quickens animal weight gains. And wholesale pork prices could come down after grocers buy all the product they need for the Labor Day holiday
The U.S. September 2 Labor Day holiday is the last holiday of the summer grilling season
U.S. Department of Agriculture data on Wednesday afternoon showed the wholesale pork price on a plant-delivered basis at $103.14 per hundredweight (cwt), which was $1.17 lower than on Tuesday
Separate USDA data showed the average hog price at the closely watched Iowa/Minnesota market on Wednesday afternoon at $98.17 per cwt, down $1.51 from Tuesday
BEEF PRICES UNDERPIN CATTLE CME live cattle futures posted gains for a third day in a row with wholesale beef prices moving higher, said traders and analysts
The government on Wednesday afternoon reported the wholesale price, or cutout, of choice beef surged $2.03 per cwt from Tuesday to $192.35. Select cuts rose $1.40 to $184.70
Supermarkets are stocking meat cases in perpetration for the upcoming Labor Day holiday
Investors look for improved wholesale beef values, and less cattle up for sale, to lift prices for cattle in the cash market
Cash cattle bids in the U.S. southern Plains were at $119 per cwt against $123 to $124 asking prices, feedlot operators said
Last week, cash cattle in Texas and Kansas moved at $121 per cwt. Live-basis cattle in Nebraska traded at $123.50 a week ago
August live cattle futures closed up 0.100 cent at 124.000 cents per lb and October settled at 128.175 cents, a gain of 0.100 cent
The rise in corn prices and profit taking weakened CME feeder cattle
August feeders closed at 153.600 cents, down 0.250 cent per lb. September closed down 0.250 cent at 157.450 cents.
