Chicago/Reuters – Chicago Mercantile Exchange live cattle stretched their losing streak to four days on Friday after investors tweaked positions before the government cattle reports due later in the afternoon, traders said.
The U.S. Department of Agriculture’s monthly Cattle-On-Feed report was due at 2 p.m. CDT (1900 GMT).
At the same time, USDA will issue the semiannual cattle inventory data.
August closed 0.325 cent per lb lower at 143.025 cents, and October was down 0.525 cent at 144.125 cents.
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Furthermore, languid seasonal beef demand and this week’s lower prices for market-ready, or cash, cattle kept futures buyers on the defensive, the traders said.
Friday morning’s wholesale choice beef price, or cutout, was at $231.00 per cwt, down $1.59 from Thursday. Select cuts were up 64 cents to $228.60, the USDA said.
Cash cattle in the U.S. Plains sold at $145 to $146 per cwt, down as much as $3 from last week, feedlot sources said.
“There is a seasonal low toward the end of the month for futures and cash. But trying to figure out exactly when that will happen is a coin toss,” said EBOTTrading.com senior analyst John Kleist.
CME feeder cattle were pressured by sell-stops and live cattle futures selling.
August closed down 0.100 cent per lb at 209.675 cents.
Hog futures end lower
Sell-stops, fund liquidation and lower-trending cash prices dragged down CME lean hogs, traders said.
August ended down 0.600 cent per lb at 77.675 cents. October finished 0.675 cent per lb lower at 64.025 cents, below the 20-day moving average of 64.36 cents.
USDA reported Friday morning’s average cash hog price in Iowa/Minnesota had fallen $1.35 per cwt from Thursday to $74.66.
Ample hog supplies sank hog prices in eight out of the past 10 days, but retailers periodically bought relatively cheap pork versus record-high beef, a trader said.
The pork industry is on track to process 2.107 million hogs, 25,000 more than last week, based on USDA estimates.
The morning’s wholesale pork price was at $85.49 per cwt, up 74 cents from Thursday.
— Theopolis Waters reports on livestock markets for Reuters from Chicago.
