May 8, 2017 / 7:41 PM / 2 months ago

LIVESTOCK-Cattle mostly sharply higher on roll, beef gains

3 Min Read

    By Michael Hirtzer
    CHICAGO, May 8 (Reuters) - U.S. live cattle futures were
mostly sharply higher on Monday, rising as investors rolled
positions forward and as wholesale beef prices extended gains,
traders and analysts said.
    Feeder cattle and lean hogs also climbed at the Chicago
Mercantile Exchange, with all three recouping a portion of the
losses notched on Friday due to profit-taking. Most cattle
contracts were trading just below lifetime peaks reached earlier
last week amid rising prices for cattle in Plains cash markets.
    "We're just continuing the rally we've had the last few
weeks," said Steiner Consulting Group analyst Altin Kalo. "Going
into Friday, (investors) wanted to take some money off the table
and now they're back to it."
    Traders were liquidating holdings in front-month CME June
live cattle       , rolling into August        and October
       on the second of the five-day roll for traders tracking
Standard & Poor's Goldman Sachs Commodity Index          .
    June live cattle eased 0.525 cent to 127.775 cents per pound
while all other contracts gained. August cattle were up 2.075
cents to 123.250 cents.
    August cattle extended gains after the U.S. Department of
Agriculture at midday said choice wholesale beef was $1.61
higher at $240.48 per cwt, the highest since September 2015.
    Retailers were finalizing plans for the meat they will put
on sale for the U.S. Memorial Day holiday on the final Monday of
the month - the unofficial start of summer outdoor grilling
season, analysts said.
    Lean hog futures hit their highest since March 24, boosted
by seasonally tightening U.S. hog supplies and expectations that
pork was priced to compete with beef for space in refrigerated
meat cases and barbecue grills.
    Most-active CME June hog futures        settled up 1.050
cent to 77.375 cents per pound.
    "Slaughter numbers start to decline in May, (animal) weights
go down due to the weather, and demand gets a little bit better
as people buy more protein for the grill," Kalo said of hogs.
    CME August feeder cattle        gained 3.225 cents to
156.650 cents per pound. 
    Feeder prices were steady to $3 per cwt higher at a closely
watched cash cattle auction in Oklahoma City, according to USDA.
            

 (Reporting by Michael Hirtzer in Chicago; Editing by James
Dalgleish)
  

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