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CME live cattle weaken by cash sentiment, deliveries
December 11, 2012 / 2:51 PM / 5 years ago

CME live cattle weaken by cash sentiment, deliveries

2 Min Read

Dec 11 (Reuters) - CME live cattle futures edged lower
Tuesday on sentiment for steady-to-weaker prices for cattle in
the cash market this week, said analysts and traders.
    * They also cited 112 deliveries posted by the CME late on
Monday against the December contract that will expire on Dec.
31.
    * Because of futures' premium to cash, it makes sense to
deliver the cattle and let someone else have them rather than
cover the short hedges on the board, an analyst said.

    LIVE CATTLE - At 8:35 a.m. CST (1435 GMT), December 
was at 125.275 cents per lb, down 0.325 cent. February 
slipped 0.100 cent to 130.175 cents.
    * Packers will continue to do everything they can to bring
their margins back in line including pressuring cash cattle
prices and raising wholesale beef values, a trader said.
    * There were no cash bids are asking prices reported.
    * Cash cattle last week in Kansas and Nebraska brought $124,
down $1 from the week before. Texas cash cattle moved at $124,
compared with $126 to $128 a week earlier.
    * While boxed beef prices gained on Monday, they will be
inconsistent as beef demand begins to wane as the end of the
year approaches, he said.
                       
    FEEDER CATTLE - January was up 0.050 cent per lb at
149.825 cents per lb, and March was at 152.200 cents, a
gain of 0.050 cent.
    * Futures were supported by weaker corn prices following the
government's monthly crop production report.
    
    LEAN HOGS - December was off 0.150 cent at 82.000
cents per lb. February was down 0.100 cent to 83.825
cents.
    * Packers lowered bids for cash hogs for a third straight
day as their margins struggled amid lackluster wholesale pork
demand.
    * Processors will find no shortage of hogs during the winter
holidays and ham business is nearly completed for the year, a
trader said.

 (Reporting by Theopolis Waters in Chicago;editing by Sofina
Mirza-Reid)

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