Chicago | Reuters –– Chicago Mercantile Exchange live cattle futures closed up sharply on Friday, fuelled by better-than-expected prices for market-ready cattle, traders said.
June ended 2.125 cents higher at 151.5 cents per pound, and August 1.55 cents, to 149.825 cents (all figures US$).
On Friday, cash cattle in Kansas and Nebraska traded at $161 to $162 per hundredweight (cwt), up from early-week sales in the U.S. Plains of $157 to $160, industry sources said.
A week ago, overall cash cattle in the Plains traded at $160 to $163.
Many processors were caught short on supplies after ramping up kills in anticipation of a seasonal bump in production that has yet to materialize.
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“Packers needed cattle so ultimately they had to pay up” said Oak Investment Group president Joe Ocrant.
Processors were able to offset some of their cash costs by charging wholesalers more for beef, traders and analysts said.
Friday afternoon’s choice wholesale beef price was up 54 cents/cwt from Thursday, to $258.12/cwt. Select cuts rose 98 cents, to $246.82, the U.S. Department of Agriculture (USDA) said.
CME’s feeder cattle followed live cattle futures higher.
April closed 0.975 cent/lb. higher at 215.875 cents.
Hogs up with cash prices
CME lean hogs settled higher as tight supplies drove cash and wholesale pork prices upward, traders said.
May hogs closed one cent per pound higher at 80.85 cents/lb., and June up 1.325 cents to 84.825 cents/lb.
The government reported Friday afternoon’s average cash hog price in Iowa/Minnesota up 77 cents/cwt from Thursday to $79.17.
Separate USDA data quoted the Friday afternoon wholesale pork price at $79.57 per cwt, 73 cents higher than on Thursday.
— Theopolis Waters reports on livestock markets for Reuters from Chicago.
