CHICAGO, Nov 27 (Reuters) – Chicago Mercantile Exchange live cattle futures rose on Wednesday supported by higher cash cattle trades this week, analysts and traders said
Beef packers this week in Kansas paid $132 per cwt, up $1 from last week’s trade. Some analysts and traders had expected steady trade with last week
“This market has seen a pretty impressive rally given it is turkey and ham season,” said Lane Broadbent, an analyst with KIS Futures
The record low U.S. cattle herd continues to boost cash prices
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Cattle bought this week will be for post-Thanksgiving beef production, which was supportive to cash prices as some analysts expect beef demand to improve after the holiday
The U.S. Department of Agriculture’s Wednesday morning wholesale beef price, or boxed beef, was higher at $202.75 per cwt for choice cuts, up $1.33 from Tuesday. Select cuts were up $1.26 at $190.34 per cwt
“The higher boxed beef helped the cash cattle market. There are some expectations that packers are going to need cattle to meet beef demand before the first of the year,” Broadbent said
Beef processing margins have been squeezed as packers have paid up for cattle in the cash market. Margins were at a negative $27.65 per head, compared with a negative $31.70 on Tuesday and a negative $60.70, according to Hedgersedge.com
December cattle futures settled up 1.150 cents at 133.100 cents per lb. February cattle settled 134.100, up 1.075 cents
CME feeder cattle followed live cattle higher. January feeder cattle ended 0.950 cent per lb higher at 165.325 cents, while March ended up 0.850 cent at 165.150
CME HOGS SUPPORTED BY FIRM CASHÂ Â Â Â Â Firm cash hog prices helped CME hog futures settle higher in light trading, traders said
Hogs in the U.S. Midwest traded steady to $1 higher as packers built up supplies for a large weekend kill, hog brokers said
Packers traditionally plan a large slaughter the weekend following Thanksgiving day as most plants stop production for the holiday
Cash hog prices, as reported by the USDA in the closely watched Iowa/Minnesota direct market, were not available early on Wednesday, but prices in the eastern Midwest direct market rose 88 cents to $77.39 per cwt
The USDA reported early on Wednesday record high hog weights in the Iowa/southern Minnesota market for the fourth straight week. The average weight for the week ended Saturday was 281.4 lbs, up from 281.2 lbs in the previous week and up 7 lbs from a year earlier
Deferred month hog contracts were supported by concerns regarding the spread of the Porcine Epidemic Diarrhea virus (PEDv), a fatal piglet disease. The disease could reduce hog supplies in 2014
December hog futures closed up 0.175 cent at 85.800 cents per lb. February hogs closed up 0.075 cent at 90.475 cents
CME livestock futures trading will be closed Thursday for the Thanksgiving Day holiday, and will trade in truncated sessions Friday, closing at 12:15 p.m. CST.
