CME live cattle futures gain with cash prices
Oct 17 (Reuters) - CME live cattle futures moved upward on Thursday as higher cash prices overshadowed new deliveries reported by the exchange late on Wednesday, traders and analysts said.
* On Wednesday packers in Texas and Kansas paid $129 per hundredweight (cwt) for cattle, up $1 from last week, feedlot sources said.
* Late Wednesday, the CME posted 23 new deliveries against the spot October contract that will expire on Oct 31.
* Those deliveries will wind up in the hands of someone willing to accept physical delivery of cattle, a trader said.
* CME livestock market investors were relieved that U.S. lawmakers reached a short-term deal to reopen the federal government and avoid a U.S. debt default.
* "We'll finally get a real look at official USDA hog and cattle price information after pretty much operating in a vacuum over the past two weeks," a trader said.
* The USDA's cattle-on-feed report, which was scheduled for release on Friday, will be postponed due to the lapse in federal funding, the agency said on Thursday.
* The National Agricultural Statistics Service is assessing its data collection plans and evaluating the timing of upcoming reports, the USDA said.
* Most analysts polled by Reuters for the cattle report said feedlot placements last month likely rose 1.6 percent from a year ago as corn costs declined.
LIVE CATTLE - At 9:25 a.m. CDT (1425 GMT), October was 1.000 cent higher at 130.300 cents per lb. December was at 133.700 cents, up 0.450 cent.
* Fewer cattle available for sale this week forced packers to spend more for supplies, an analyst said. There is a chance of $130 per cwt sales in Nebraska as feedlots there hold out for more money, he said.
* The recent rise in wholesale beef prices was credited for this week's cash support. But some wonder if demand for expensive beef will keep pace with near-record cash prices.
* There is a possibility that consumers may switch to pork or chicken if beef costs continue to rise, the analyst said.
* FEEDER CATTLE - October rose 0.925 cent to 166.925 cents per lb, while November was at 168.775 cents, 1.050 cents higher.
* Higher CME live cattle pulled up feeder cattle futures.
LEAN HOGS - December was at 89.425 cents, up 0.625 cents and hit a new contract high of 89.900 cents. February gained 0.450 cent to 91.100 cents after marking a new contract high of 91.525 cents.
* More fund buying and short-covering pushed CME hogs to new contract highs for a second day in a row.
* The December contract's discount to cash hog prices and to CME's settlement price of 90.62 cents for the expired October 2013 hog contract lured buyers, he said.
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