Lower beef prices pull down CME live cattle futures

July 16 Wed Jul 16, 2014 9:46am EDT

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July 16 (Reuters) - Chicago Mercantile Exchange live cattle futures sagged on Wednesday after wholesale beef prices turned lower late Tuesday following a spike earlier in the day, traders said.

* At 8:35 a.m. CDT (1335 GMT), August was down 0.675 cent at 147.900 cents per lb, and October fell 0.625 cent to 151.225.

* Tuesday afternoon's wholesale price for choice beef was down 61 cents per hundredweight (cwt) from Monday at $250.53. Select beef fell 96 cents to $243.46, according to the U.S. Department of Agriculture.

* Beef demand typically wanes after the Fourth of July holiday as warmer weather curbs consumer appetites for heavier meals.

* The possible slowdown in beef demand and the long-awaited seasonal supply increase might pressure prices for market-ready, or cash, cattle this week.

* Cash cattle bids in Texas and Kansas were at $152 per cwt versus $158 asking prices from sellers, said feedlot sources. Last week, cash cattle in the U.S. Plains sold at $155 to $156 per cwt.

* On Tuesday, the CME said it is in the initial stage of considering whether to shorten electronic livestock market trading hours.

* FEEDER CATTLE - August dropped 1.600 cents per lb to 209.925, and September was 1.450 cents lower at 210.375.

* CME feeder cattle felt pressure from profit-taking, higher corn prices and lower live cattle futures.

* LEAN HOGS - August was down 0.475 cent at 130.250 cents, and October was at 115.500 cents, down 0.450.

* CME hogs moved lower on profit-taking in response to Tuesday's weak prices for hogs at heavier weights, traders said.

* USDA data showed the Tuesday afternoon average hog price in the Iowa/Minnesota market down 51 cents per cwt from Monday to $132.18.

* On Wednesday, separate government data showed hog weights in Iowa/Minnesota for the week ended last Saturday averaged 285.5 lb, up 1.3 lbs from the week before and up 13.5 lbs from a year earlier.

* Packers have cut kills and allowed bigger hogs to offset production losses in the wake of the deadly Porcine Epidemic Diarrhea virus.

* Cooler than normal temperatures in the Midwest for this time of year and less-costly feed is conducive for making hogs heavier quickly, an analyst said. (Reporting by Theopolis Waters in Chicago; Editing by Peter Galloway)

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