June 25 (Reuters) – CME live cattle drew lower calls on Monday after the U.S. Department of Agriculture monthly cattle-on-feed report on Friday more cattle placed in feedlots and less animals marketed in May than expected.
* Traders also cited the government’s monthly cold storage report Friday in which USDA pegged total beef stocks in May at a record high 498.6 million lbs. That was down 4 percent from the prior month and up 11 percent from a year ago.
* A firm hog futures opening is anticipated based on higher cash hog and wholesale pork prices, but record large May pork inventories may limit futures advances.
* Pork supplies in Friday’s USDA report were at 636.1 million lbs, which was down 4 percent from the previous month and up 16 percent versus last year
* Cattle and hog futures may encounter stock market pressure amid renewed worries over Europe’s debt crisis.
LIVE CATTLE – Called 0.300 to 0.500 cents per lb lower.
* Investors await this week’s cash cattle sales after cash last week brought mostly $116 per cwt, which was $3 lower than the week before.
* Packers may again attempt to lower bids for cattle because they will require fewer animals for next week’s U.S. Independence Day holiday-shortened workweek, an analyst said.
* Wholesale beef prices may also taper off as grocers fill their needs for upcoming holiday grilling specials.
FEEDER CATTLE – Seen 0.500 to 1.000 cents per lb lower.
* Futures were likely to open lower with live cattle market.
* Investors also point to sharply higher corn futures, which could mean increased feed costs for cattle feeding operations.
LEAN HOGS – Called 0.100 cent to 0.300 cent per lb higher.
* Speculative buyers are encouraged by packers raising bids for hogs amid tight supplies.
* The shortage of hogs and supermarkets booking product for the U.S. Independence Day holiday helped lift wholesale pork prices.
* China’s pig farmers should cut supply to stabilize pork prices, the country’s top economic planning body said on Monday.
Source: Reuters
Posted by Haylie Shipp
