Chicago | Reuters — Live cattle futures on the Chicago Mercantile Exchange lifted on Wednesday, supported by cash cattle prices that pulled up nearby futures markets.
“We just got below the cash market,” said Alan Brugler, president of Brugler Marketing. “That was an argument to try the long side.”
The nearby April live cattle contract firmed 0.9 cent, to 137.7 cents/lb., as did the most-active June contract, adding 0.9 cent, to 134.225 cents/lb. (all figures US$).
Cash cattle traded mostly steady at $138/cwt, according to the U.S. Department of Agriculture, though some $140 trade could be found in the northern Plains.
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Packers processed 125,000 head of cattle, 4,000 more than the same period a year earlier.
Boxed beef prices eased, with choice cuts falling 49 cents, to $271.04/cwt, while select cuts lost $1.85, to $261.05.
Feeder cattle were supported by stronger live cattle and softer corn futures, with the May contract ending 0.95 cents higher at 159.95 cents/lb.
Meanwhile, CME lean hog futures firmed after falling for six sessions, also supported as nearby contracts move to converge with cash prices.
CME nearby May lean hogs firmed 1.075 cents, to 98.75 cents/lb., lifting the benchmark June contract 0.35 cents, to 114.7 cents/lb.
Hog processors slaughtered 460,000 head, 20,000 below the same day last week and 34,000 below year-over-year volumes.
The CME’s Lean Hog Index, a two-day weighted average of cash hog prices, fell 0.75 cents, to 101.66 cents/lb.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
