CME cattle futures rise on cash trade, positioning ahead of USDA report
By Renee Hickman
CHICAGO, Nov 22 (Reuters) -Chicago Mercantile Exchange live cattle futures firmed on Friday as cash market trading gathered steam at firm prices, according to analysts, and traders awaited the results of the U.S. Department of Agriculture's Cattle on Feed report, which the agency released after the close.
Feeder cattle gained for a sixth straight session and set fresh multi-month highs with demand continuing for stocker calves after rains this month replenished grazing pastures in the southern Plains.
"You've seen some pretty strong cash markets in the feeders this last week or two," said Austin Schroeder, commodity analyst at Brugler Marketing and Management.
CME January feeder cattle FCF25 settled up 0.850 cent at 254.300 cents per pound, its highest since July. February live cattle LCG25 futures closed up 0.775 cent at 188.200 cents per pound.
Traders also squared positions ahead of the USDA Cattle on Feed report, released after trading ended on Friday.
The report showed that October placements of cattle in U.S. feedlots were 5% greater than last year. That's higher than trade expectations for a 3.8% gain, according to a Reuters poll of analysts.
On the wholesale market, choice boxed beef gained 62 cents to $307.41 per hundredweight on Friday afternoon, according to the USDA. Select boxed beef fell 85 cents to $272.07 per cwt.
Beef packers, meanwhile, were estimated to be losing an average of $32.10 per head on Friday, according to livestock marketing advisory service HedgersEdge. That was smaller than both Thursday's loss of $39.60 and a loss of $72.90 per cwt last week.
CME lean hog futures advanced for a third day on Friday, with most-active February futures LHG25 up 1.025 cents at 85.675 cents per pound.
The CME lean hog index price was $87.44 for the two days ended Nov. 20.
In the wholesale pork market, the USDA priced pork carcasses on Friday afternoon at $91.77 per cwt, down $1.30 from Thursday.
Reporting by Renee Hickman; Editing by Alan Barona
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