Markets

CME cattle futures mixed

CHICAGO : US cattle futures were mixed on Tuesday, with August trading both sides of unchanged amid pressure from its

Published August 2, 2011 Updated August 2, 2011 06:09pm

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By Muhammad Iqbal

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Losses in August were limited by fewer market-ready cattle this week and strong beef exports.

Cattle deliveries can start next week against the August and its current premium to cash could prompt a number of deliveries, analysts said.

Hog futures were higher, helped by record high pork prices and news South Korea temporarily waived tariffs on imported chilled pork.

LIVE CATTLE -At 10:11 a.m. CDT (1511 GMT) August down 0.100 cent at 113.200 cents per lb and October up 0.575 at 118.375.

Cash cattle traded at $108.50 per cwt last week, while the August futures reflect a $113.00 market.

Strong beef exports last week and expected higher cash cattle markets in the weeks ahead should limit losses in futures.

Feedlot sources said Nebraska's cattle supply was down 25,000 to 26,000 cattle this week, while Kansas was down 9,000 to 10,000 head, and Texas down about 4,800 head.

Wholesale beef was lower on Monday with choice beef cut-out down 51 cents at $173.63 per cwt and select cut-out down 28 cents at $170.12.

FEEDER CATTLE - August up 0.200 cent at 137.025 cents per lb and September up 0.175 at 138.900.

Higher cash feeder price and higher deferred live cattle futures supported feeder cattle.

Latest CME feeder cattle index 135.33 cents per lb, up 1.33 cents.

LEAN HOGS - August up 0.550 cent at 103.650 cents per lb and October up 0.375 at 93.375.

Contract highs set in five 2012 contracts.

Record pork prices and strong cash hog markets guided futures higher.

South Korea will impose zero tariffs on imported chilled pork through Sept. 30 as a means to curb inflation while recovering from its worst outbreak of foot-and-mouth disease in livestock.

South Korea is a leading buyer of US pork and year to date through May has bought 264 million lbs, up from 106.7 million a year earlier.

USDA late on Monday reported wholesale pork at a record high $105.37 per cwt, up 73 cents from Friday and the fifth consecutive record high.

Cash pork should move higher, with pork bellies likely to reach $155 per cwt this week, traders said. Pork bellies traded at $150 on Monday.

Much of thze gain in pork market was attributed to China buying US pork and to a slowdown in hog marketing.

Hot Midwest weather has slowed hog marketing and pushed up prices.

Cash hogs in the Iowa-Minnesota market closed Monday at $102.29 per cwt, up $1.38 from Friday.

Latest CME lean hog index 102.26 cents per lb, up 0.75 cent.

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