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CME live cattle futures seen opening weak; hogs mixed
October 7, 2013 / 2:07 PM / 4 years ago

CME live cattle futures seen opening weak; hogs mixed

Oct 7 (Reuters) - CME live cattle futures were expected to open weak on Monday on profit-taking as the partial U.S. government shutdown drags down equities, traders and analysts said.

* Live cattle market investors were nervous about placing sizable bullish and bearish bets as the budget battle in Washington continues, traders said.

* Monday is the first notice day for deliveries. The CME said last week those deliveries against October futures will not be affected by the government closure.

* CME live cattle futures’ premiums to recent cash prices may deter buyers.

LIVE CATTLE - Called 0.100 cent to 0.300 cent per lb lower.

* Last week, cash cattle in the U.S. Plains moved at $125 to $126 per hundredweight (cwt), which was steady to $1 lower than the week before, feedlot sources said.

* Negative beef packer margins and tepid wholesale beef values kept a lid on last week’s cash prices.

FEEDER CATTLE - Seen steady to down 0.300 cent per lb.

* Possible profit-taking and live cattle market weakness could pressure CME feeder cattle.

* LEAN HOGS - Called up 0.200 cent to down 0.200 cent per lb.

* CME Octobers hog’s continued at a discount to the exchange’s most recent hog index at 96.38 cents, supportive to that contract.

* Profit-taking and the seasonal increase in hog numbers were seen weighing on futures.

* U.S. meat packers Cargill Inc and Smithfield Foods Inc said they will change the methods they use on Monday to determine what price to pay producers for hogs due to the partial U.S. government shutdown. (Reporting by Theopolis Waters in Chicago; Editing by Jeffrey Benkoe)

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