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LIVESTOCK-Bargain buying rallies CME hogs from 4-month low
April 6, 2017 / 8:47 PM / 8 months ago

LIVESTOCK-Bargain buying rallies CME hogs from 4-month low

    By Theopolis Waters
    CHICAGO, April 6 (Reuters) - Chicago Mercantile Exchange
lean hogs         closed higher on Thursday after bargain buying
lifted futures from four-month lows, said traders.
    They said buy stops and deferred-month technical buying
furthered market advances.
    April hogs         ended up 0.300 cent per pound to 63.925
cents, and May         1.200 cents higher at 69.550 cents.
    "We (futures) got cheap," said independent hog futures
trader Bill Cipolla. He cited futures' selloff prior to and
after last Thursday's U.S. Department of Agriculture quarterly
hog report.
    The USDA's hog report showed a record-large hog herd as of
March 1, which suggests plentiful supplies ahead.             
    Fallen cash hog and wholesale pork prices, as supplies grow
seasonally, stirred bear spreads. The spreads consisted of
investors who sold April futures and simultaneously bought
deferred months.
    Thursday afternoon's average slaughter-ready, or cash, hog
price in Iowa/Minnesota at $60.78 per cwt fell 63 cents from
Wednesday, the USDA said.
    U.S. government data on Thursday afternoon showed the
average wholesale pork price at $74.11 per cwt, down 76 cents
from Wednesday, mostly due to $4.90 lower pork bellies.
    The USDA estimated Monday through Thursday's total combined
hog slaughter at 1.777 million head, up 5,000 from last week and
94,000 more than a year earlier.

    CATTLE FUTURES TURN UP
    CME live cattle pared recent losses with support from buy
stops and futures' discounts to expected cash prices this week,
said traders.
    April live cattle         closed 0.525 cent per pound higher
at 118.800 cents, and June         0.700 cent higher at 110.125
cents.
    Kansas and Nebraska packers tabled $122 per cwt bids for
cash cattle that were priced up to $130, said feedlot sources.
Cash cattle in the U.S. Plains last week brought mostly $128 to
$130.
    The fact that no cattle sold at Wednesday's Fed Cattle
Exchange suggests packers might have enough near-term supplies,
a trader said.
    Negative packer margins, tepid wholesale beef demand and
more cattle for sale than last week are bearish cash influences,
said traders and analysts. 
    Thursday afternoon's average wholesale beef price fell $1.81
per cwt to $207.90 from Wednesday. Select cuts were down 23
cents to $200.28, the USDA said.
    Thursday's average beef packer margins were a negative
$10.35 per head, down from a negative $3.40 for Wednesday, as
calculated by HedgersEdge.com.
    Technical buying and live cattle futures gains pulled up CME
feeder cattle.
    April feeder cattle         closed 1.425 cents per pound 
higher at 131.950 cents.

 (Reporting by Theopolis Waters; Editing by Bill Trott)
  

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