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LIVESTOCK-Beef, profit-taking weakens CME live cattle futures
July 13, 2017 / 8:11 PM / 2 months ago

LIVESTOCK-Beef, profit-taking weakens CME live cattle futures

    By Theopolis Waters
    CHICAGO, July 13 (Reuters) - Chicago Mercantile Exchange
live cattle contracts on Thursday eased from Wednesday's 3-cent
per pound limit-up settlement, pressured by profit-taking and
seasonally struggling wholesale beef values, said traders.
    They said futures' discounts to preliminary cash prices
limited market losses.
    CME livestock market funds that track the Standard & Poor's
Goldman Sachs Commodity Index           at times sold, or
"rolled", August futures and simultaneously bought October on
the fourth of five days of the Goldman Roll process.
    August         ended 0.450 cent per pound lower at 117.425
cents. October         closed unchanged at 117.825 cents.
December         finished down 0.100 cent to 118.225 cents
    On Friday CME live cattle futures will resume their normal
3.000-cent price limit after failing to settle up or down the
expanded 4.500-cent limit on Thursday.
    Futures' bullish discounts to cash prices versus bearish
wholesale beef values made it difficult to trade the market on
Thursday, said Oak Investment Group President Joe Ocrant.
    So far this week packers in the U.S. Plains paid $120 per
cwt for slaughter-ready, or cash, cattle that a week ago brought
$117 to $119, said feedlot sources.
    They said feedlots are asking more than $120 per cwt for
unsold cattle, given slipping but still profitable packer
profits. 
    However, processors are aware that people typically grill
less in extremely hot weather, which has dragged down wholesale
beef values in recent weeks.                 
    CME feeder cattle finished higher, led by sharply lower corn
prices and follow-through buying after futures' 4.500-cent
limit-up settlement on Wednesday.
    August feeders         ended 1.275 cents per pound higher at
153.025 cents. Feeder cattle future will return to their usual
4.500-cent limit on Friday after not finishing up or down
Thursday's 6.750-cent expanded limit.
  
    HOG FUTURES END MOSTLY FIRMER
    Most CME lean hog trading months benefited from their
discounts to the exchange's hog index for July 11 at 92.75
cents.
    The roll by funds weighed on August futures and propped up
the October contract.
    July        , which will expire on Monday, ended up 0.175
cent per pound to 92.750 cents. Most actively-traded August
        finished down 0.100 cent to 82.525 cents, and October
        ended up 0.050 cent to 69.325 cents.
    Tight hog supplies underpinned cash prices, while retailers
consider featuring beef that is now more competitively-priced to
pork, said traders and analysts.                         

 (Reporting by Theopolis Waters; Editing by Chris Reese)
  

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