CME live cattle futures gain on cash price expectations

Tue Oct 8, 2013 10:41am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

Oct 8 (Reuters) - CME live cattle futures moved upward on
Tuesday in choppy action, led by anticipation of steady to
higher cash prices, traders said.
    * Those cash cattle price expectations underpinned the
October contract despite deliveries late Monday. 
    * The CME reported 23 deliveries against October futures
that will expire on Oct. 31.
                                
    LIVE CATTLE - At 9:29 a.m. CDT (1429 GMT), October 
was up 0.325 cent at 128.200 cents per lb. December was
at 132.350 cents, up 0.050 cent.
    * Fewer cattle up for sale this week and firm wholesale beef
prices are factors that can lend cash support.
    * Last week, cash-basis cattle in the U.S. Plains moved at
$125 to $126 per hundredweight (cwt).
    * Monday's wholesale choice beef price, or cutout, was up 18
cents per cwt from Friday at $192.33. The select price rose 77
cents to $177.43, according to analytical market research firm
Urner Barry.
    
    * FEEDER CATTLE - October up 0.775 cent at 164.775
cents per lb. November was at 166.175 cents, 0.700 cent
higher.
    * CME live cattle market gains and weak corn prices lift
feeder cattle futures.
                         
    LEAN HOGS - Spot October was up 0.025 cent at 91.625
cents per lb. Most-actively traded December was at 87.925
cents, 0.050 cent higher.
    * Spot October's discount to CME's last hog index last week
at 96.38 cents encouraged buyers, traders said.
    * The CME Group Inc on Monday detailed how it will
determine the final settlement price for the October 2013 lean
hog contract next week if the U.S. government shutdown persists.
 
    * Short-covering and the prospect of tight hog supplies
later this winter propped up deferred CME hog trading months.
    * Speculative traders bought December hog futures in the
belief that the U.S. government's recent quarterly hogs report
did not account for losses from the Porcine Epidemic Diarrhea
virus (PEDv), which is deadly to baby pigs.