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LIVESTOCK-Bargain buying pares some CME live cattle losses
August 11, 2017 / 7:13 PM / 4 months ago

LIVESTOCK-Bargain buying pares some CME live cattle losses

    * Feeder cattle ends higher
    * Lean hogs finishes firmer

    By Theopolis Waters
    CHICAGO, Aug 11 (Reuters) - Chicago Mercantile Exchange
contracts        on Friday landed in positive territory for the
first time in five sessions, helped by short-covering and
bargain buying, said traders.
    "We've had a big down week. I think this a kind of dead cat
technical bounce (temporary recovery) ahead of the weekend,"
Midwest Marketing Solutions analyst Brian Hoops said regarding
Friday's market gains.
    Buyers were attracted to futures that under priced, or at a
discount, compared to this week's prices for slaughter-ready, or
cash, cattle. Funds bought the October contract after it
surpassed the 200-day moving average of 107.170 cents. 
    August         ended 0.875 cent per pound higher at 109.725
cents, and October         closed up 0.800 cent higher at
107.400 cents.
    This week cash cattle in the U.S. Plains brought $114 to
$116 per cwt compared to $116 to $119 last week.
    Plentiful near-term supplies, and the outlook for increased
numbers ahead, discouraged packers from bidding up for cattle
this week, said analysts and traders.
    The U.S. Department of Agriculture estimated this week's
cattle slaughter at 641,000 head, 62,000 more than a year ago.
    Market participants await the end of seasonally sluggish
wholesale beef demand as grocers buy meat for Labor Day - the
summer's last official grilling holiday.           
    CME feeder cattle        broke its five-session losing
streak, led by live cattle futures' turnaround.
    August feeders         closed 0.600 cent per pound higher at
141.775 cents.
    
    FIRMER HOG FUTURES SETTLEMENT
    CME lean hogs gained modestly, helped by their price
discounts to the exchange's hog index for Aug. 9 at 85.50 cents,
traders said.
    Investors bought nearby hog contracts and simultaneously
sold deep-deferred months in anticipation of a supply buildup
later this year. 
    People are concerned about bigger supplies ahead, but a new
packing plant coming online during the fourth quarter should
allow the industry to handle the increased numbers, said Hoops.
    August        , which expires on Monday, closed up 0.200
cent per pound to 84.650 cents. Most actively traded October
        ended 0.650 cent to 68.625 cents.

 (Reporting by Theopolis Waters; Editing by Chizu Nomiyama)
  

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