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LIVESTOCK-Cattle futures firm, hogs mixed on technical trading
June 7, 2017 / 9:45 PM / 5 months ago

LIVESTOCK-Cattle futures firm, hogs mixed on technical trading

    By Michael Hirtzer
    CHICAGO, June 7 (Reuters) - U.S. live cattle futures        
rose on Wednesday in a rebound from losses in the previous
session while some lean hog contracts         weakened following
recent gains in technically driven consolidation trade, traders
and analysts said.
    Rising wholesale beef prices buoyed cattle futures as
retailers bought to stock meat coolers ahead of the Father's Day
holiday this month and the U.S. Independence Day holiday next
month, both popular times for outdoor grilling.
    Investors were anticipating a seasonal break in cattle and
beef prices as that beef buying slows. But cattle futures
remained discounted to trades in Plains cash cattle markets,
underpinning futures amid nearly record-high open interest in
Chicago Mercantile cattle futures.
    "The live cattle are responding to continued solid
fundamentals. ... It's difficult to create a sustained
downtrend," Cassie Fish, an analyst and author of blog The Beef,
said in a phone interview.
    CME June live cattle futures        settled up 1.000 cent at
131.200 cents per pound while most-active August cattle futures
       firmed by 0.575 cent to 124.175 cents.
    No deliveries have been posted so far against June futures
in the delivery cycle that began on Monday, according to the CME
Group. Cash cattle last week in the Plains fetched $134 to $137
per cwt, up from the June futures equivalent of about $131.
    The weekly Fed Cattle Exchange online auction was scheduled
for Thursday, postponed one day due to technical issues,
according to the auction website.
    The U.S. Department of Agriculture after the close of
futures trading said wholesale choice beef was up 26 cents to
$250.71 per cwt, the highest in more than a year.           
    CME August feeder cattle        settled down 0.575 cent at
154.800 cents per pound, extending losses after tumbling nearly
3 percent on Tuesday.
    CME June lean hog futures        were off 0.025 cent to
81.625 cents and most-active July hogs        were down 0.300 to
81.075 while most other deferred contracts edged higher.
    Investors were taking profits after hog prices hit
multimonth peaks last week and then failed to surpass those
highs so far this week.
    "There's not a lot of enthusiasm to get long $80 hogs," CHS
Hedging analyst Steve Wagner said by phone.
    Hogs were up 77 cents at an average of $76.12 per cwt in the
top cash market in Iowa and southern Minnesota, the USDA said.
         
    Wholesale pork was up 81 cents at $91.06 per cwt while the
popular grilling cut of ribs gained $5.09 to $146.06 per cwt,
according to government data.         

 (Reporting by Michael Hirtzer in Chicago; Editing by Jonathan
Oatis)
  

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