CHICAGO Oct 12 CME Mercantile Exchange live
cattle futures are weaker on Wednesday in anticipation of lower
cash prices by Friday, but bargain hunting lifted contracts from
morning low, said traders.
* At 09:54 a.m. CDT (1454 GMT) October was 0.450
cent per pound lower at 97.050 cents, and December 0.600
cent lower at 98.500 cents.
* Early on Wednesday bids for market-ready, or cash, cattle
in Texas surfaced at $98 per cwt against $102 asking prices,
said feedlot sources. Last week, cash cattle in the U.S. Plains
brought $101 to $103.
* Processors are having difficulty moving significant
amounts of beef in the face of plentiful pork and chicken, an
* He added that some packers will try to match current
supplies by slowing down slaughter rates, with at least one
plant scheduled to be offline by week's end for maintenance
* There were no new deliveries reported by the CME late on
Tuesday, however 6 heifer deliveries that were posted by the
exchange on Monday were reissued.
* CME livestock market investors will monitor the U.S.
Department of Agriculture's monthly grain reports on Wednesday
at 11 a.m. CDT (1600 GMT). The data could have feed implications
for cattle and hog producers.
FEEDER CATTLE - October was 1.250 cents per pound
lower at 122.875 cents, on follow-through selling and live
cattle market weakness.
LEAN HOGS - October, which will expire on Friday,
was up 0.725 cent per pound to 52.175 cents. Most-actively
traded December was 0.925 cent higher at 43.700 cents.
* CME lean hogs drew support from their discounts to the
exchange's hog index for Oct. 10 at 52.82 cents.
* Hog market bulls were encouraged by word late on Tuesday
that Smithfield Foods aims to resume operations by
Thursday at its Tar Heel, N.C. plant that was idled by Hurricane
* "We need that plant up and running as soon as possible to
help clean up the glut of hogs that backed up on farms in the
area," a trader said.
* He said the plant's potential return to operation stirred
short-covering and bargain buying that offset Tuesday's weaker
cash and wholesale beef prices.
* Iowa/Minnesota hog weights for the week ended Oct. 8
averaged 281.2 pounds, up 0.2 pound from the prior week and up
0.1 pound from a year ago, based on Wednesday's USDA data.
(Reporting by Theopolis Waters in Chicago)