CHICAGO, April 19 (Reuters) – Chicago Mercantile Exchange live cattle futures closed Friday mostly weak as traders awaited the U.S. Department of Agriculture monthly cattle-on-feed report at 2 p.m. CDT, said traders and analysts.
Analysts expected the data to show the number of cattle placed in feedlots last month fell from a year ago as high-priced corn reduced demand for younger cattle. (The report came in higher than expected. See separate story.)
Lower prices for cattle in the cash market and tepid wholesale beef demand weighed on futures.
Read Also
Canadian Financial Close: Loonie rises, crude oil slips
Glacier FarmMedia | MarketsFarm – The Canadian dollar gained strength on Tuesday, closing at its highest level in 18 days. The loonie…
Spot April live cattle closed up 0.150 cent per lb. to 126.350 cents.
Most-actively traded June ended at 121.300 cents, down 0.075 cent. August ended at 121.625 cents, down 0.150 cent.
“April priced in this week’s cash trade even though it fell short of what people were looking for,” a trader said.
Slaughter-ready cattle on a cash-basis in Nebraska on Friday traded at $126 per cwt.., $1.50 to $2 lower than last week, said feedlot sources. Cattle in Texas on Monday fetched $125, down $2 from a week ago.
Packers in Kansas raised cash bids to $126 per cwt. from $125 against $128 asking prices, a feedlot manager said.
Cash price optimism faded after futures took back gains made on Tuesday and Wednesday. Unusually wet and cold weather hurt demand for spring grilling, which kept a lid on wholesale beef prices.
USDA Friday morning reported the average wholesale choice beef price at $190.28 per cwt., down 51 cents from Thursday; Select cuts rose $1.07 to $185.32.
Lower deferred-month CME live cattle futures and firmer corn prices pressured feeder cattle futures for a third straight session.
Spot April settled down 0.425 cent per lb. to 134.025 cents. It posted a fresh contract low of 133.525 cents in after-hours trading.
Most-actively traded May closed at 139.200 cents, 0.850 cent lower and made a new contract low of 138.375 cents.
HOGS SAG WITH CASH, PORK PRICES
CME hog futures fell on profit taking led by lower cash hog and wholesale pork prices, analysts and traders said.
“Packers cut bids after securing hogs for this week and as grocers bought hand-to-mouth until we get a break in weather for grilling,” a trader said.
Hog futures slipped beneath key technical support, which triggered fund selling and sell stops.
CME June hogs settled 0.400 cent per lb. lower at 90.200 cents per lb.. It drifted below where the 20-day and 40-day moving averages converge at 90.45 cents.
July finished at 90.275 cents, 0.525 cent lower. It fell below the 40-day and 20-day moving averages of 90.61 and 90.47 cents, respectively.
Government data Friday morning showed the average hog price in the western Midwest market fell $1.05 per cwt. from Thursday to $77.06.
Friday morning’s USDA mandatory wholesale pork price, calculated on a plant-delivered basis, was at $83.15 per cwt., down 83 cents from Thursday.
