CME live cattle seen opening higher, hogs mixed

Tue Feb 18, 2014 9:53am EST

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Feb 18 (Reuters) - CME live cattle were expected to open
higher on Tuesday, lifted by Monday's jump in wholesale beef
values and last week's higher cash prices, traders said.
    * Monday afternoon's wholesale choice beef price was $210.98
per hundredweight (cwt), up $3.30 from Friday. Select cuts rose
$2.06 to $209.02, according to U.S. Department of Agriculture.
    * Last week, cash cattle in Texas and Kansas moved at $142
per cwt, up $1 from the week before, feedlot sources said. Cash
cattle in Nebraska traded at $143, $2 higher than the previous
week, they said.
    * There were no cattle deliveries reported by the CME late
on Friday against the February live cattle contract that will
expire on Feb. 28.
                            
    LIVE CATTLE - Called 0.200 cent to 0.400 cent per lb higher.
    * Packers paid more for cattle after getting caught short of
supplies, a trader said. 
    * Higher cash prices wore down packer margins which will
likely cause processors to reduce operating hours this week, he
said.
    * Beef packer margins for Monday were estimated at a
negative $119.95 per head, compared with a negative $81.20 per
head on Friday and a negative $112.25 a week ago, as calculated
by HedgersEdge.com.
                         
    FEEDER CATTLE - Steady to up 0.300 cent per lb.
    * CME feeder cattle futures may draw support from the
possibly firm live cattle market and steady-to-higher feeder
cattle prices in local markets.
    
    * LEAN HOGS - Called up 0.200 cent to down 0.200 cent per
lb.
    * Mixed, rather than lower, cash hog prices on Monday and
higher wholesale pork values may offer support to CME hog
futures, traders said.
    * The average cash hog price in the western Midwest on
Monday was down 11 cents per cwt to $88.12, but 76 cents higher
at $84.05 in the eastern Midwest region, based on USDA data.
    * Government data showed the price of pork at wholesale on
Monday at $95.39 per cwt, $1.06 higher than on Friday.
    * Some packers have hogs bought into the middle of this
week, which could weigh on cash prices in parts of the country,
an analyst said.
    * Other processors look to secure supplies for the rest of
the week, he said.
    * Futures' premium to the exchange's hog index at 85.87
cents might discourage buyers, traders and analysts said.
    * A water main break may have temporarily disrupted
slaughter at an Iowa hog processing plant, hog dealers said.

 (Reporting by Theopolis Waters in Chicago; Editing by James
Dalgleish)
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