CME live cattle futures move higher; hogs lower

Wed May 7, 2014 9:54am EDT

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May 7 (Reuters) - Chicago Mercantile Exchange live cattle
futures moved upward on Wednesday, with support from their
discounts to prices for market-ready, or cash, cattle last week,
traders said.
    * Wednesday is the first of five days in which funds that
follow the Standard & Poor's Goldman Sachs Commodity Index will
sell, or "roll," their June long CME live cattle and hog,
positions into deferred months.    
    * At 8:38 a.m. CDT (1338 GMT), June was up 0.675 cent
per lb to 138.975 cents, and August rose 0.800 cent to
138.725 cents.
    * Another choppy trading day may be in store for CME live
cattle as investors await reports regarding this week's cash
sales, an analyst said.
    * A seasonal rise in cattle numbers and Tuesday's lower
wholesale beef price are bearish factors for cash prices,
traders said.
    * They said futures' recent upswing and improved packer
margins might underpin cash returns.
    * Cash cattle bids in Texas and Kansas developed at $144 per
hundredweight (cwt), feedlot sources said. 
    * Last week, cash cattle in Texas and Kansas sold at $146
per cwt, with sales of $147 to $150 in Nebraska. 

    * FEEDER CATTLE - May was at 184.375 cents, up 0.900
cent per lb, and August was 1.650 cents higher at
192.900.
    * CME live cattle futures' buying and weak corn prices
lifted feeder cattle contracts.
    
    * LEAN HOGS - May lean hogs were at 115.400 cents per
lb, down 0.650 cent. Most actively traded June was 0.550
cent lower at 122.675 cents.
     * CME hogs slid on profit-taking following Tuesday's
sizable wholesale pork price setback, traders said.
     * The delayed start of spring grilling slowed retail demand
for pork, a trader said.
     * Futures' premium to CME's hog index, at 114.21 cents,
discouraged buyers.
     * Investors are eyeing news that workers at the JBS
 Worthington, Minnesota hog plant voted to authorize a
strike over wages and health benefits, according to statement
late on Tuesday from a union representing the employees.

 (Reporting by Theopolis Waters in Chicago Editing by W Simon)
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