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CME live cattle firm, market awaits cash trade
February 6, 2014 / 3:01 PM / 4 years ago

CME live cattle firm, market awaits cash trade

Feb 6 (Reuters) - CME live cattle were firm on Thursday
while expectations of weak cash trade and lower wholesale beef
prices limited gains, traders and analysts said.
    * Cold weather and snow packed roads around the U.S. Midwest
and Plains will slow livestock movement. Hog and cattle weight
gain will likely be affected by the cold temperatures.
    * Weak wholesale beef prices have contributed to processors'
negative profit margins which will likely force them to bid
lower for cash cattle this week, traders said.
    * Cash cattle bid stood at $139 per cwt, while $146 was the
asking price, a trader said.    
                        
    LIVE CATTLE - At 8:50 a.m. CST (1450 GMT), February 
was at 139.725 cents per lb, up 0.025 cent. April was at
139.275 cents, up 0.175 cent.
    * Wednesday afternoon's wholesale choice beef price was
$216.64 per cwt, down $3.85 from Tuesday, and select cuts were
at $216.63, down $2.58 cents, according to USDA.
    * Beef packer profit margins on Wednesday were estimated at
a negative $52.90 per head, compared with a negative $57.00 per
head on Tuesday and a positive $53.75 a week ago, according to
HedgersEdge.com.
    * U.S. weekly beef exports sales in current marketing year
totaled 8,100 tonnes.

    FEEDER CATTLE -  March was at 166.825 cents per lb,
down 0.100 cent. April was at 167.675 cents per lb, up
0.025 cent.  
    * Firm CME live cattle live cattle lent support, while
strengthening CBOT corn futures values dragged on CME feeder
cattle.
    
    * LEAN HOGS -  February was at 86.550 cents per lb,
up 0.100 cent, while April was at 94.675 cents, down
0.300 cent.
    * CME front month lean hogs contract February and CME April
contract were narrowly mixed after jumping to weekly highs a day
earlier. 
    * Snow packed roads and cold temperatures will slow hog
movement as plants attempt to resume normal operations, cash hog
dealers said.
    * Weather-induced delays will likely reduce slaughter weekly
slaughter volume again this week, the dealers said. 
    * On Wednesday USDA estimated week-to-date slaughter at
1.250 million head, down from 1.261 million head for the same
period last year. 
    * USDA pegged pork wholesale prices on Wednesday afternoon
at $91.43, down 9 cents from Tuesday. 
    * U.S. pork export sales for the week ended January 30 in
current marketing year totaled 6,600 tonnes, according to USDA
data. 
    

 (Reporting by Meredith Davis in Chicago)

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