June 29, 2018 / 9:16 PM / in 21 days

LIVESTOCK-Cattle futures surge daily price limit on better cash sales

    By Michael Hirtzer
    CHICAGO, June 29 (Reuters) - Chicago Mercantile Exchange
live cattle futures         surged by their 3.000 cents per
pound daily price limit on Friday, boosted by investment fund
buying and better-than-expected sales in cash cattle markets,
traders and analysts said.
    Feeder cattle futures         also climbed by their daily
limit, of 4.500 cents per pound, tracking the higher prices in
the more actively traded live cattle market while CME lean hogs
        were widely mixed in spread trading.
    Some investors were cleaning up their books on the final
trading day of the month and quarter, with short-covering in
both cattle and hogs also underpinning prices.
    Most-active CME August live cattle futures        ended up
3.000 cents at 106.725 cents per pound, notching their largest
gains in about a month. The June contract        expired down
1.200 cents at 107.000 cents per pound.
    Beef packers in Texas paid about $107 to $108 per cwt for
cattle - sales that were up $1 to $3 from deals earlier this
week. That suggested more robust demand and triggered buying in
futures from investment funds and other dealers, traders said.
        
    CME August feeder cattle futures        finished up 4.500
cents to 151.325 cents per pound, highest since March 8. 
    Price limits in live cattle will expand to 4.500 cents and
feeder cattle to 6.750 cents for Monday's session, the CME Group
said on its website.
    CME August lean hogs       , the most active hogs futures
contract, were up 0.725 cent to 76.450 cents per pound while
front-month July hogs        were up 1.750 cents to 82.875
cents. However, deferred contracts for autumn hogs fell sharply,
with December hogs        sinking 2.025 cents to 54.550 cents.
    Forecasts for hotter-than-normal temperatures in the United
States supported hog and cattle prices, as animals tend to eat
less in warmer weather, slowing weight gain and effectively
limiting available supplies.
    Extreme temperatures should persist through the first week
of July, meteorologists said on Friday.             
    "July (hogs) are a function of the cash market, which is a
function of the weather," said independent livestock trader Dan
Norcini. "This (will be) the worst heat of the summer. Probably
in the short-term, it will take a little production out of
pork."

 (Reporting by Michael Hirtzer; Editing by Richard Chang)
  
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