* Cash price optimism stirs short-covering
* Feeders cattle slip on lower cash prices
* Feb hogs up, others slide amid spreads
By Theopolis Waters
CHICAGO, Feb 5 Chicago Mercantile Exchange live
cattle futures rose on Tuesday, helped by short-covering
following higher wholesale beef prices, analysts and traders
Optimism for cash cattle prices generated additional live
cattle futures buying interest, they said.
CME live cattle spot February settled 0.525 cent per
lb higher at 127.600 cents. The most-active April ended
up 0.025 cent to 132.300 cents.
USDA showed the price for wholesale choice beef Tuesday
morning at $184 per cwt, up $1.26 from Monday; select cuts
jumped $1.16 to $180.17.
Packers will continue to cutback slaughters which should
help improve their margins and boost wholesale beef prices, a
From Monday to Tuesday, packers slaughtered 236,000 head of
cattle, 13,000 less than a week earlier and a year ago during
the same period, according to the U.S. Department of
HedgersEdge.com put the average beef packer margin for
Tuesday at a negative $69.70 per head, compared with a negative
$86.95 on Monday and a negative $23.05 on Jan. 29.
"We will likely see at least steady, and possibly higher
cash cattle prices, as it appears we're putting in a short-term
bottom on the beef side," said Oak Investment Group president
Feedlot sources reported no cash cattle bids or asking
prices. Cash cattle last week moved at mostly $122 to $124 per
cwt, they said.
CME feeder cattle slipped on lower prices for younger cattle
at the most-watched Oklahoma City market.
Traders cited deferred-month live cattle market weakness and
March finished down 0.350 cent per lb to 148.525
cents. April closed 0.375 cent lower to 152.025 cents.
MOST HOGS DROP ON SPREADS
Hog futures ended mostly lower as bullish spreads supported
spot February but pressured deferred contracts, traders and
Spot February hogs settled up 0.250 cent per lb at
88.325 cents. February tracked CME's lean hog index at 88.88
cents before the spot month expires on Feb. 14.
Most-active April ended at 87.700 cents, 0.650 cent
lower and June closed 0.650 cent lower at 96.450 cents.
Some people are concerned about pork values moving forward
as we start to come into more hog numbers and as packers work to
realign their margins, said R.J. O'Brien hog futures trader Tom
The average hog price at the most-watched Iowa/Minnesota
market on Tuesday morning was $85.44 per cwt, $2.13 lower than
on Monday, USDA said.
The average pork packer margin for Tuesday was a negative
$5.50 per head, compared with a negative $8.15 on Monday and a
negative $4.80 on Jan. 29, according to HedgersEdge.com.