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LIVESTOCK-Cattle mostly firm on short covering; big supply weighs
September 1, 2017 / 8:47 PM / 20 days ago

LIVESTOCK-Cattle mostly firm on short covering; big supply weighs

    By Karl Plume
    CHICAGO, Sept 1 (Reuters) - Chicago Mercantile Exchange live
cattle futures         were mostly higher on Friday, lifted by
end-of-week short covering following a decline to nine-month
lows a day earlier, traders said.
    Futures, however, remain anchored by plentiful supplies of
market-ready cattle and weak cash markets as fed cattle in the
U.S. Plains this week traded about $1 to $2 per cwt lower than a
week ago at around $105 per cwt.
    "It still looks like we have a few weeks of pressure left in
front of us in September with rising cattle numbers seasonally,"
said Rich Nelson, chief strategist with Allendale Inc.
    "Next week we will have a push of higher (cattle) numbers
available for packers to buy. I think this market is bracing for
this next round of lower prices," he said.
    The most-active CME October live cattle contract        was
the only lower contract, settling down 0.250 cent at 105.150
cents per pound. Deferred contracts were 0.300 to 0.775 cent
higher.
    Feeder cattle futures         also edged up, following gains
in live cattle and as corn futures        resumed a recent
decline that could lower costs for fattening cattle.
    Most-active CME October feeders        closed 0.250 cent
higher at 143.550 cents per pound while November        ended up
0.275 cent at 143.950 cents.
    Lean hog futures         settled mostly higher, underpinned
by expectations for a seasonal increase in packer demand as they
fill orders this month for National Pork Month features in
October.
    Front-month October hog futures        finished 0.050 cent
higher at 61.450 cents per pound and December hogs        up
0.025 cent to 58.050 cents.
    Markets will be closed on Monday for the U.S. Labor Day
holiday.

 (Reporting by Karl Plume; Editing by Phil Berlowitz)
  

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