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CME live cattle narrowly mixed on weaker beef, hogs firm
February 4, 2014 / 3:06 PM / 4 years ago

CME live cattle narrowly mixed on weaker beef, hogs firm

Feb 4 (Reuters) - CME live cattle were narrowly mixed on
Tuesday amid weaker wholesale beef prices and in anticipation of
lower cash cattle trade, traders and analysts said.
    * More wintry weather is moving across the Midwest. Frigid
temperatures could slowdown cattle weight gains and snow-packed
roads may delay the delivery of livestock to packing plants.
    *  Cargill Inc, one of the world's largest beef
processors, said on Monday that starting Jan. 20 labels on its
Cargill-branded, 100-percent-U.S.-fresh-ground-beef products
specify if they contain finely textured beef. 
                        
    LIVE CATTLE - At 8:46 a.m. CST (1446 GMT), February 
was at 140.125 cents per lb, down 0.025 cent. April was
at 139.450 cents, up 0.050 cent.
    * Monday afternoon's wholesale choice beef price was $220.09
per cwt, $3.40 lower than on Friday, and select cuts were
$219.42 down $5.43 in light demand and low volume sales,
according to USDA.
    * 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.
   * Last week, cattle in Texas and Kansas moved at mostly $145
per hundredweight (cwt), down $2 from the week before, feedlot
sources said. Cash cattle in Nebraska fell $4 to $146, they
said.

    FEEDER CATTLE -  March was at 167.975 cents per lb,
down 0.025 cent. April was at 168.225 cents per lb, down
0.175 cent.  
    * Firm corn prices weighed on CME feeder cattle contracts.
    
    * LEAN HOGS -  February was at 85.550 cents per lb,
up 0.675 cent, while April was at 93.350 cents, up 0.500
cent.
    * CME hog futures stabilized after sharp sell-off due to
profit-taking and fund liquidation on Monday. Cash prices hold
steady to firm. 
    * Snowfall and colder temperatures expected in the U.S.
Midwest and portions of the Plains late on Tuesday could slow
hog movement. 
    * Some packers have near-term supply needs met, but others
still need hogs for the rest of this week's production. Weather
-induced delays could disrupt pork production, traders said.
    * USDA pegged pork wholesale prices on Monday afternoon at
$90.55, up $1.25 from Friday. [US/POR}
    * A new strain of Porcine Epidemic Diarrhea virus, or PEDv,
has been identified in samples taken from Illinois and Missouri,
a top veterinarian at Iowa State University said on Monday.
 
    * Anticipation of reduced hog production this summer due to
PEDv, which is fatal to baby pigs, lent support to June and July
CME hog contracts, traders and analysts said.

 (Reporting by Meredith Davis in Chicago)

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