CME live cattle, hog futures seen opening mixed

Mon Mar 3, 2014 9:56am EST

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March 3 (Reuters) - CME live cattle were expected to open
mixed on Monday, supported by higher beef prices on Friday but
pressured by the selloff in equities tied to Ukraine tensions,
traders said.
    * The U.S. stock market slumped as Ukraine and Russia
mobilized for war, with Russian President Vladimir Putin
declaring he had the right to invade his neighbor.
 
    * Chicago Mercantile Exchange livestock traders worry that
potential U.S. involvement in the Russian crisis could derail
the planned March 10 return of U.S. pork exports to Russia.
    * "If this becomes a bigger issue, Russia may not allow U.S.
beef back down the road," a trader said.
    * The CME on Friday reported nine cattle deliveries against
the February live cattle contract that expired at noon CST (1800
GMT) that day. 
    * Another wintry blast stretching from the Midwest to the
East Coast could snarl the movement of livestock to market.
Bitter cold associated with the storm is expected to slow down
weight gains in cattle.
                            
    LIVE CATTLE - Called up 0.300 cent per lb to down 0.300
cent.
    * April could garner support from its discount to last
week's record-high cash prices and strong wholesale beef values,
traders said.
    * Retailers are buying beef hand-to-mouth while putting it
in storage to feature later in March in preparation for the
spring grilling season, a trader said.
    * Friday afternoon's wholesale choice beef price surged
$3.92 per hundredweight (cwt) from Thursday to $225.33. Select
cuts jumped $4.12 to $223.12, based on U.S. Department of
Agriculture data.
    * Last week, cash cattle in Texas and Kansas moved at $150
per cwt, surpassing the January record of $146 to $147. Cash
cattle in Nebraska moved at $152, topping last month's $150
record.
                         
    FEEDER CATTLE - Seen 0.300 to 0.700 cent lower.
    * CME feeder cattle futures may feel pressure from sharply
higher corn prices.
    
    * LEAN HOGS - Called up 0.200 cent to down 0.200 cent per
lb.
    * Friday's cash and wholesale pork prices could lend support
to CME hogs, traders and analysts said.
    * On Monday, packers in the Midwest raised cash hog bids as
much as $2 per cwt amid tight supplies, dealers said. 
    * Anticipation of fewer hogs this summer due to the Porcine
Epidemic Diarrhea virus may continue to prop up deferred CME hog
contracts.
    * Increased tensions in the Ukraine that rattled Wall Street
might give hog traders an excuse to take profits, an analyst
said.

 (Reporting by Theopolis Waters in Chicago; Editing by Lisa Von
Ahn)
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