July 2, 2012 / 1:53 PM / 5 years ago

CME cattle seen weak with beef demand; hogs mixed after report

July 1 (Reuters) - CME live cattle were called weak on
Monday on slowed wholesale beef demand and profit-taking after
Friday's end-of-quarter short-covering rally.
    * A mixed hog open is expected as traders digest last
Friday's U.S. Department of Agriculture report that analysts
viewed as neutral to mildly bullish for futures. 
     
    LIVE CATTLE - Called 0.200 to 0.300 cents per lb lower.
    * USDA late Friday estimated the average price for wholesale
choice beef at $194.66 per cwt, down $1.46 from Thursday. Select
cuts tumbled $2.24 to $178.09. 
    * "Beef prices were miserable. Retailers have what they need
for the holiday and the heat may be slowing things down a bit on
the grilling side," a CME cattle trader said.
    * Investors will consider last week's unusually light cash
cattle trade at $116 per cwt, which was steady compared with the
week before.
    * "A bullish trader may see that as packers being
short-bought for this week while bears view it as cattle backing
up  because packers didn't buy as many cattle last week," a CME
live cattle trader said.
    * Market participants are anticipating a choppy trading
session in light volume as investors even up positions before
Wednesday's U.S. Independence Day holiday.
        
    FEEDER CATTLE - Seen 0.500 to 1.000 cents per lb lower.
    * Futures were likely to open lower as corn prices moved
higher which could raise feed costs for cattle feeding
operators.

    LEAN HOGS - Called down 0.300 cent to up 0.300 cent per lb.
    * Near-term cash hog and wholesale pork price weakness may
pressure July and August futures.
    * But expectations hot weather would result in fewer hogs
coming to market could lend futures support.
    * USDA estimated the average cash hog price Friday in the
most-watched Iowa/southern Minnesota market down 22 cents per
cwt to $99.15. 
    * The government's average wholesale pork price Friday
dropped 72 cents per cwt to $95.43. 

 (Reporting by Theopolis Waters)

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