August 24, 2017 / 7:50 PM / a year ago

LIVESTOCK-CME live cattle futures snaps back from 9-month low

    * Feeder cattle closes mostly firmer
    * Hogs float up from 4-month bottom
    * USDA monthly cattle report on Friday

    By Theopolis Waters
    CHICAGO, Aug 24 (Reuters) - Chicago Mercantile Exchange live
cattle        settled higher on Thursday after short-covering
and bargain buying rescued futures from a nine-month low earlier
in the session, said traders.
    Technical buying and positioning before the U.S. Department
of Agriculture's monthly Cattle-On-Feed report on Friday
provided more market support.             
    August        , which will expire on Aug. 31, ended up 0.300
cent per pound to 105.950 cents. Most actively-traded October
        finished 0.650 cent higher at 106.825 cents.
    "Futures rallied but peeled back from highs because no one
wants to get far ahead of Friday's report that could show bigger
cattle numbers down the road," a trader said.
    Investors await remaining slaughter-ready, or cash, cattle
sales in the U.S. Plains that so far this week brought $106 to
$107 per cwt. Last week those cattle fetched $109 to $110.
    Plentiful cattle supplies further dragged down wholesale
beef values, which tend to peak soon after Labor Day - the
summer's final grilling holiday, said traders and analysts.
    "There's enough beef, pork and chicken out there for
supermarkets to choose from. Pretty soon, talk will turn to ham
and turkey for the year-end holidays," another trader said.
    Short-covering, live cattle futures turnaround and technical
buying lifted most CME feeder cattle contracts from morning
    August feeders        , which will expire on Aug. 31, closed
down 0.025 cent per pound to 141.600 cents. Most actively-traded
September         closed up 0.275 cent to 142.175 cents, and
October         finished 0.700 cent higher at 142.400 cents.
    CME lean hogs        settled moderately higher on buy stops
and bargain buying, but not before initially sinking to a
four-month low as burdensome supplies continued to undercut cash
prices, said traders.
    Nonetheless bullish investors were drawn to futures that
remained undervalued compared with the exchange's hog index for
Aug. 22 at 80.49 cents.
    October         ended up 0.225 cent per pound to 63.775
cents, and December         finished 0.400 cent higher at 59.250
    The seasonal supply bump, and packers needing fewer animals
going into Labor Day plant closures, points to mostly weaker
cash prices in the near term, a trader said.
    Almost fall-like weather in the Midwest is causing hogs to
grow sooner than expected - making them more accessible to
processors at less money, said traders and analysts.            

 (Reporting by Theopolis Waters; Editing by Andrew Hay)
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