November 11, 2013 / 3:11 PM / in 4 years

CME live cattle futures seen opening weak, hogs mixed

Nov 11 (Reuters) - CME live cattle futures are expected to open weak on Monday, weighed by profit taking after last Friday’s lower wholesale beef prices, traders said.

* Friday afternoon’s wholesale choice beef price was $202.79 per cwt, $1.20 lower than on Thursday. Select cuts were at $189.74, down 43 cents, according to U.S. Department of Agriculture data.

* Ham and turkey will be featured more by grocers leading up to the Nov. 28 U.S. Thanksgiving Day holiday, an analyst said.

* CME live cattle may also draw pressure from last week’s lower cash cattle prices, according to analysts and traders.

* Funds that follow the Standard & Poor’s Goldman Sachs Commodity Index (S&PGSCI) will shift, or “roll,” their CME live cattle and hogs December long positions into February and April. Monday marks the third of five days for the process.

* CME livestock markets will trade within normal hours on Monday during the U.S. Veterans’ Day holiday.

* Light trading volume on Monday could result in a choppy session, a trader said.

LIVE CATTLE - Called 0.100 to 0.300 cent per lb lower.

* Packers last week paid $131 per cwt for cattle, down $1 from the week before, due to poor margins and slowed beef demand, traders said.

* They said investors will await further direction from beef demand and cash cattle prices before taking sizable long or short positions in the market on Monday.

* FEEDER CATTLE - Seen 0.100 to 0.400 cent per lb lower.

* CME feeder cattle could take its cue from the possibly weak live cattle market and firm corn prices. Costly corn may discourage feedlots from buying young cattle.

LEAN HOGS - Called down 0.300 to up 0.300 cent per lb.

* CME hogs may benefit from residual buying following last Friday’s future’s advances and firm wholesale pork prices, traders said.

* USDA data showed Friday afternoon’s wholesale pork price, or cutout, at $94.85 per cwt, up 79 cents from Thursday. The cutout rise was led by the $5.05 jump in costs for pork bellies, which are made into bacon.

* Potential profit taking and steady-to-weak prices for cash hogs at heavier weights are pressuring market factors, the traders said. (Reporting by Theopolis Waters in Chicago; Editing by Maureen Bavdek)

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