January 9, 2018 / 12:16 AM / 5 months ago

LIVESTOCK-Strong cash prices propel CME hogs to one-year high

    By Theopolis Waters
    CHICAGO, Jan 8 (Reuters) - Chicago Mercantile Exchange lean
hogs        on Monday reached their highest level in almost a
year as packers competed for supplies during the first full week
of production after the New Year's holiday, said traders.
    The February contract led the charge after investors bought
that trading month and simultaneously sold deferred contracts.
    February         hogs settled up 1.550 cents per pound at
72.975 cents. April         ended 0.725 cent higher at 76.800
cents.
    
    MORE LIVE CATTLE FUTURES LOSSES
    CME live cattle        lost ground for a third straight
session following last week's softer cash prices and the
prospect of lower cash returns this week, said traders.
    Monday was the first of five days in which funds in CME's
livestock markets that follow the Standard & Poor's Goldman
Sachs Commodity Index          , "rolled," or sold February
positions and simultaneously bought deferred months.
    February         live cattle finished 2.025 cents per pound
lower at 117.225 cents. April         ended 1.550 cents lower at
119.300 cents.
    The roll contributed to Monday's declines but warmer weather
in the Plains this week, which might result in more cattle
coming to market, was a major factor behind the selloff, said
Oak Investment Group President Joe Ocrant.
    He added that last week's winter storm on the East Coast may
have hurt beef demand in the region.
    A week ago packers paid $121 to $122 per cwt for
slaughter-ready, or cash, cattle moved at mostly $123 a week
earlier.
    The recent cold spell across much of the Plains and Midwest
slowed weight gains in cattle and made it difficult to transport
to packing plants.
    Sell stops and live cattle futures losses pressured CME
feeder cattle contracts.
    January         feeder cattle closed down 0.175 cent per
pound to 146.450 cents.

 (Reporting by Theopolis Waters)
  
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