LIVESTOCK-US hog futures bounce higher with cash prices

Mon Sep 16, 2013 6:56pm EDT

Related Topics

* Live cattle firm on spreads, short-covering
    * CME feeder cattle up with live cattle futures

    By Theopolis Waters
    CHICAGO, Sept 16 (Reuters) - Chicago Mercantile Exchange
hogs on Monday spiked to new contract highs, driven by strong
cash hog prices, traders and analysts said.
    The U.S. Department of Agriculture on Monday afternoon
reported the average hog price in the most-watched
Iowa/Minnesota market up $1.09 per hundredweight (cwt) from
Friday at $96.48.
    CME October hogs finished 1.425 cents per lb higher
at 92.125 cents and hit a new contract high of 92.225 cents in
after-hours trading.
    December hogs settled at 88.475 cents, up 1.225
cents, and marked a new contract high of 88.500 cents. 
    Hog numbers declined last week for various reasons, which
pushed up cash prices, U.S. Commodities analyst Don Roose said.
    Pork producers rushed hogs to market to take advantage of
higher prices before the Labor Day holiday. Last week's hot
weather slowed hog weight gains, making them less available to
packers.
    And hog producers downsized their herds during last summer's
 historic drought in the Midwest that shot feed costs to record
highs, resulting in fewer hogs now.      
    But a seasonal bump in hog supplies, Monday's pork price
drop and unprofitable packer margins could soon pressure cash
values, traders said.
    HedgersEdge.com estimated margins for U.S. pork packers on
Monday were a negative $0.95 per head, compared with a negative 
$2.45 on Friday and a positive $4.65 a week ago.
    USDA data showed the wholesale pork price, or cutout, Monday
afternoon at $96.71 per cwt, $1.45 lower than on Friday.

    SPREADS LIFT LIVE CATTLE
    CME live cattle futures closed moderately higher on bullish
spreads in anticipation of steady cash cattle prices this week,
traders and analysts said.
    October closed 0.300 cent per lb higher at 125.550
cents per lb and December finished up 0.075 cent at
129.225 cents.
    Mixed wholesale beef quotes and the belief that cash cattle
prices have bottomed out seasonally could underpin cash prices
and support futures, traders said.
    No cash bids or asking prices were reported by feedlot
sources. Cash cattle in the U.S. Plains last week traded at $123
per hundredweight (cwt), which was steady with the week before.
    USDA data Monday afternoon showed the wholesale choice beef
price, or cutout, at $193.02 per cwt, up 33 cents from Friday.
Select cuts were down 25 cents to $176.43.  
    Flooding in northern Colorado forced the shutdown of JBS
USA'S Greeley, Colorado, beef packing plant, company
spokesman Cameron Bruett said. The facility, which processes
about 5,000 head of cattle per day, will resume operations on
Tuesday, he said. 
    CME feeder cattle drew support from modest live cattle
market gains and $3 to $5 per cwt higher cash feeder cattle
prices local markets.
    September ended up 0.300 cent to 157.600 cents while
October settled at 159.500 cents, 0.225 cent higher.
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.