By Meredith Davis
CHICAGO, Nov 19 (Reuters) – Chicago Mercantile Exchange live cattle futures ended lower on Tuesday, pressured by technical selling and weaker wholesale beef prices, analysts and traders said
As the Thanksgiving holiday season approaches beef demand typically diminishes in favor of turkey and ham. Analysts said less demand may cause a backlog of beef products, which could drive wholesale prices even lower
The U.S. Department of Agriculture Tuesday morning reported the choice beef wholesale price at $199.88 per cwt, down 68 cents from Monday. Select cuts slid 47 cents to $189.24
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“There is the issue of demand on the beef side of the equation. A lot of skeptics say that you can’t move beef at these levels,” said Dan Norcini, an independent livestock futures trader
Investors are uncertain about this week’s cash cattle price direction following live cattle futures’ recent selloff and as packer margins slipped deeper into the red
There were no cash cattle bids or offers reported early on Tuesday, according to feedlot sources. Cash-basis cattle last week moved at $132 per cwt
The USDA suspended its semi-annual U.S. cattle inventory report for a second year on Tuesday due to budget cuts
Live cattle December finished down 0.950 cent per lb at 130.950 cents, and February closed at 131.675 cents, or 1.525 cents lower
CME feeder cattle fell, led by fund liquidation and lower live cattle futures
November feeders, which will expire on Nov. 22, closed down 0.475 cent at 164.375 cents per lb. January ended at 162.400 cents, 1.900 cents lower
HOGS END MIXED CME hogs ended narrowly mixed, pressured by lower wholesale pork values while the rebound in cash hog prices offered support, traders and analysts said
Some packers raised cash bids to ensure they have supplies for the rest of this week’s production
Tuesday morning’s cash hog prices in the closely watched Iowa/Minnesota market jumped $3.30 per cwt to $81.51, the USDA said
Increased hog numbers at heavier weights dragged on wholesale pork prices, Norcini said
The government’s Tuesday morning wholesale pork price fell $1.25 from Monday to $91.43 per cwt
Packers on Monday and Tuesday processed 876,000 hogs, 46,000 more than a week ago and up 8,000 from a year ago for the same period, based on USDA estimates
December hogs settled down 0.175 cent at 85.425 cents per lb, while February closed unchanged at 89.900 cents. April finished up 0.450 cent to 92.750 cents.
