Chicago | Reuters — Chicago Mercantile Exchange live cattle futures weakened on Wednesday, with profit taking noted as prices remained near multi-year highs hit during February.
Strength in the cash market limited the declines.
Hog futures also were weaker but the market remained underpinned by hopes that recent weakness in soybeans and corn will cut into feeding costs in the coming months.
Most-active April live cattle dipped 0.35 cent to close at 165.125 cents/lb. (all figures US$). Technical resistance was noted at the high end of the contract’s 20-day Bollinger range. Support was noted at its 20-day moving average.
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Wholesale boxed beef prices were steady to firm. Choice cuts were priced at $287.83/cwt on Wednesday afternoon, $1.12 lower than a day earlier, according to U.S. Agriculture Department data. Select cuts were down $2.82, at $276.43/cwt.
CME March feeder cattle futures fell 1.5 cents to 188.3 cents/lb. The contract peaked at 191.1 cents, the highest for the front-month contract in nearly 7-1/2 years, on Wednesday morning.
CME April lean hogs ended 0.225 cent lower at 84.95 cents/lb. after hitting resistance at its 20-day moving average. June hogs dropped 0.925 cent to 100.8 cents.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.
