CME live cattle futures slip; hogs mostly firm

Fri May 9, 2014 9:46am EDT

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May 9 (Reuters) - Chicago Mercantile Exchange live cattle
futures slid lower on Friday, weakened by profit-taking
following Thursday's lower wholesale beef prices, traders said.
    * Anticipation of steady to lower prices for market-ready,
or cash, cattle exerted more pressure on futures, they said.
    * Friday is the third 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.
    * CME livestock traders will eye U.S. Department of
Agriculture crop production reports to be issued at 12:00 p.m.
CDT (1700 GMT). The data could have feeding implications for
cattle and hog producers.
    * At 8:35 a.m. CDT (1335 GMT), June was 0.375 cent
per lb lower at 137.550 cents, and August slipped 0.275
cent to 137.325 cents.
    * "The market will bounce around until we get direction from
the cash cattle market," a trader said. 
    * Cash cattle bids in Texas and Kansas were $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. 
    * Negative packer margins and expectations for a seasonal
bump in supplies could pressure cash prices, traders and
analysts said.
    * Wet spring weather delayed the start of spring grilling,
which is weighing on meat sales and is another negative factor
for cash cattle prices, a trader said.

    * FEEDER CATTLE - May was at 183.950 cents, up 0.450
cent per lb. August was 0.400 cent lower at 189.875, and
September dropped 0.375 cent to 190.275.
    * Firm cash feeder cattle prices underpinned CME May feeder
cattle, but profit-taking and weak live cattle futures pressured
other feeder cattle contracts.
    
    * LEAN HOGS - May lean hogs were at 114.750 cents per
lb, down 0.150 cent. Most actively traded June was up
0.525 cent at 120.675 cents, and July gained 0.850 cent
to 124.275.
     * Lower cash prices on Thursday pressured May CME hogs,
traders said.
     * Packers have supplies booked for this week and are buying
for next week, they said.
     * Short-covering and anticipation of tight supplies, as the
fatal Porcine Epidemic Diarrhea virus spreads on U.S. hog farms,
lifted deferred hog contracts, an analyst said.
     * Pork demand is expected to improve soon as grocers buy
product for Memorial Day holiday grilling, he said.
     * An eastern Midwest hog plant that processes 10,000 hogs
per day was back in operation on Friday after being idled by
mechanical repairs on Thursday, traders and hog dealers said. 
     * Investors continue to monitor continued talks between JBS
 and union employees at the company's Worthington,
Minnesota, hog plant after workers on Tuesday voted to strike 
over wages and health benefits.

 (Reporting by Theopolis Waters in Chicago; Additional reporting
by Meredith Davis; Editing by Peter Galloway)
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