U.S. Live Cattle Futures Climb On Steady-to-Higher Cash Expectations; Hogs Mostly Lower
August 28 2015 - 4:27PM
Dow Jones News
By Ilan Brat
CHICAGO--U.S. live-cattle futures finished at a fresh multi-day
high Friday, bolstered by stout consumer demand for beef and
confidence that cash trade will be steady or higher than the
previous week.
Lean-hog futures were mostly lower.
Live-cattle futures rose, pulled up in part by anticipation that
cash prices would hold steady or even increase compared with the
previous week. Wholesale beef prices have held up better than some
people had expected and that has provided some confidence to
packers who look likely to maintain or even raise their bids, said
Dan Norcini, an independent livestock trader in Coeur d'Alene,
Idaho.
Still, he said he expects prices to decline in the coming weeks
as feedlots boost supplies by bringing cattle off pasture and into
feed yards.
"You should see some weakness in the red-meat complex" going
forward, he added.
August live-cattle futures were closed up 1.875 cents, or 1.3%,
at $1.46525 a pound on the Chicago Mercantile Exchange, the highest
closing price for the front-month contract since Aug. 18. October
cattle gained 1.425 cents at $1.43975 a pound. September feeder
cattle futures added 2.05 cents at $2.024 a pound.
Lean-hog futures closed mostly lower, pulled down by lower cash
prices. Hog and pork production remains well above the previous
year, as hog producers have taken advantage of cheaper feed costs
to boost herds and pack on pounds. But the increased supply has
weighed on futures prices, which are near the lowest level since
early this year. Some analysts are concerned that hog output is
poised to grow further in the weeks ahead, likely exerting further
pressure on prices.
CME October lean hogs were closed down 0.625 cent, or 0.9%, at
66.425 cents a pound. December hogs were flat at 62.05 cents a
pound.
Write to Ilan Brat at ilan.brat@wsj.com
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(END) Dow Jones Newswires
August 28, 2015 16:12 ET (20:12 GMT)
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