June 28, 2017 / 7:19 PM / 2 months ago

LIVESTOCK-CME live cattle up on bargain buying after selloff

    * Feeder cattle rallies from morning lows
    * Lean hog contracts finish higher

    By Theopolis Waters
    CHICAGO, June 28 (Reuters) - Chicago Mercantile Exchange
live cattle futures settled higher on Wednesday after bargain
buying and short-covering offset early-session selling following
Tuesday's heavy losses, said traders.
    They said discounts in deferred months to this week's
expected cash prices contributed to market advances.
    June        , which will expire on Friday, closed 0.650 cent
per pound higher at 120.250 cents. Most actively traded August
        ended 0.600 cent higher at 115.625 cents.
    A small number of animals at Wednesday morning's Fed Cattle
Exchange brought $119 to $120 per cwt, down from $123 a week
ago.
    Last week market-ready, or cash, cattle in the U.S. Plains
brought $118 to $123 per cwt.
    Some processors will keep reining in cash spending given the
seasonal slump in beef demand and plant closures during the U.S.
Independence Day holiday, said traders.             
    They said phenomenal packer profits, and fewer cattle for
sale than last week, might underpin cash prices in parts of the
Plains.             
    The weaker dollar, which typically makes U.S. goods more
attractive to foreign buyers, provided additional market
support.
    Recent market volatility might carry over into Thursday as 
investors adjust positions ahead of the holiday and end of the
quarter, said traders and analysts.
    Short-covering, technical buying and subsequent live cattle
futures' advances rallied CME feeder cattle from session lows.
    August feeders         ended 1.525 cents per pound higher at
146.400 cents.
    
    HOGS CLOSE HIGHER  
    CME lean hog futures' discounts to the exchange's hog index
for June 26 at 91.10 cents attracted buyers, said traders.
    Market participants also tweaked positions before Thursday's
U.S. Department of Agriculture quarterly hog report.
            
    Pre-report positioning capped back-month advances but
boosted July futures to a new high. 
    July         ended 1.450 cents per pound higher at 87.925
cents, and hit a fresh high of 88.000 cents. August        
finished 0.925 cent lower at 79.475 cents.
    Packers cut cash hog bids with a few plants giving employees
the day off on Monday prior to Tuesday's holiday, when most
facilities will be closed, said traders and analysts.
            
    They said retailers bought pork to round out Fourth of July 
grilling inventories and to offset potential meat shortages due
to holiday plant shutdowns.             
    Current hog supplies are plentiful as farmers rush pigs to
market as cash prices decline, a trader said. But the return of
hot summer weather could slow animal weight gains, which makes
hogs less available to processors, he said.             
            

 (Reporting by Theopolis Waters)
  

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