CME live cattle futures move higher with beef prices
Oct 25 (Reuters) - CME live cattle futures rose for a sixth straight session on Friday, fueled in part by the recent increase in wholesale beef prices amid tight supplies, traders and analysts said.
* Grocers resumed beef purchases after limiting their buying amid uncertainty about consumer spending during the U.S. government shutdown, an analyst said.
* Thursday afternoon's average wholesale choice beef price, or cutout, was at $201.07 per hundredweight (cwt). The price was up 28 cents from Wednesday and the highest since $201.19 on June 17, according to U.S. Department of Agriculture data.
* Tyson Foods Inc said it stopped buying slaughter-ready cattle from Canada as of mid-October due to higher costs associated with mandatory country-of-origin labeling, a company spokesman said on Thursday.
* "Tyson might buy U.S. cattle to make up for the shortfall in Canadian imports," a trader said.
* There were no live cattle deliveries posted by the CME late on Thursday against October futures that will expire on Oct. 31.
LIVE CATTLE - At 9:12 a.m. CDT (1412 GMT), October was 0.900 cent higher at 133.700 cents per lb. December was at 133.800 cents, up 0.925 cent.
* Processors are buying cattle for next week after paying record-high prices this week of mostly $132 per cwt. That price surpassed the previous record high of $130 for the week ending March 2, 2012.
* Bullish investors expect continued scarce cattle numbers and brisk beef demand will force packers to spend more for cattle.
* Market bears believe processors would resist raising cash cattle bids to counter tight supplies and recover lost margins.
* FEEDER CATTLE - October gained 0.250 cent to 165.800 cents per lb, while November was at 167.525 cents, up 0.575 cent.
* Short-covering and the higher live cattle market helped CME feeder cattle snap back from Thursday's losses.
LEAN HOGS - December was at 90.475 cents per lb, 0.875 cent higher, and marked a contract high of 90.650 cents. February rose 0.700 cent to 92.550 cents, after posting a new contract high of 92.675 cents.
* CME hogs rose to new highs, fueled by lingering talk that the Porcine Epidemic Diarrhea Virus (PEDv), which is deadly to baby pigs, is on the rise on U.S. hog farms and could reduce supplies into next year.
* Thursday's higher wholesale pork price provided more futures support.
* And December futures' discount to CME's hog index, which was at 91.25 cents, encouraged buyers.
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