CME live cattle futures edge downward; hogs slipChicago Mercantile Exchange live cattle futures dipped in choppy action on Thursday on technical selling and uneasiness regarding this week's cash price direction, traders said.
By: Staff Report, Reuters
Chicago Mercantile Exchange live cattle futures dipped in choppy action on Thursday on technical selling and uneasiness regarding this week's cash price direction, traders said.
* At 8:49 a.m. CDT (1349 GMT), June was down 0.150 cent per lb to 150.075 cents, after slipping beneath the 40-day moving average of 150.32 cents. August was 0.300 cent weaker at 148.625 cents, and is below the 10-day moving average of 148.86 cents.
* On Wednesday, a few market-ready, or cash, cattle in Nebraska fetched $157 to $160, compared to mostly $163 there last week, industry sources said.
* Cash bids in Kansas and Texas stood at $157 per cwt versus $163 asking prices, they said. Last week, cash cattle in the U.S. Plains moved at mostly $160 to $163.
* Packers are countering poor margins and higher cash prices by cutting kills, traders and analysts said.
* Futures' sizable discount to recent cash prices at times provided downside market support.
* Funds trading CME's live cattle and hog markets periodically sold, or rolled, June long positions and simultaneously bought deferred months in a procedure known as the Standard & Poor's Goldman Sachs Commodity Index (S&PGSCI) roll.
* Thursday is the first of five days for the S&PGSCI roll process.
* On Thursday, USDA's export data for the week ended April 30 showed U.S. beef sales at 14,700 tonnes, mostly to Japan, compared with 12,400 tonnes the previous week.
* FEEDER CATTLE - May was up 0.150 cent per lb to 214.650 cents, and August slipped 0.225 cent to 216.650 cents.
* CME feeder cattle were supported by soft corn prices, but pressured by modest live cattle market weakness.
* LEAN HOGS - May was down 0.100 cent per lb to 80.250 cents, and June was 0.375 cent lower to 83.675 cents.
* CME lean hogs were pressured by sporadic profit-taking and futures' premiums to current cash prices, traders said.
* Strong cash and wholesale values pegged to tight supplies provided underlying market support, they said.
* The government reported Wednesday afternoon's average cash hog price in Iowa/Minnesota climbed 94 cents per cwt from Tuesday to $77.55.
* Separate USDA data quoted the Wednesday afternoon wholesale pork price at $77.49 per cwt, $1.47 higher than on Tuesday.
* Thursday's government weekly export data showed U.S. pork sales at 16,700 tonnes, mostly to Mexico, compared with 24,600 the previous week.