* Beef price jump enhance futures advances
* Feeders climb as corn prices move lower
* Profit-taking pull hogs from session highs
* USDA quarterly hogs report set for Friday
By Theopolis Waters
CHICAGO, Dec 26 (Reuters) – U.S. live cattle futures turned
higher on Wednesday as cash cattle price sentiment strengthened
with wholesale beef prices, analysts and traders said.
Chicago Mercantile Exchange live cattle traders expect cash
cattle to trade steady to higher compared with last week’s at
$126 to $127, due in part to fewer cattle being put up for sale.
Slaughter-ready cattle may be less available as colder
weather settles into the U.S. Plains and slows weight gains in
animals.
“The expectations that we may see higher cash sales is
supporting the market, but it is in very light trade,” said
Allendale Inc broker Steve Georgy.
The price for wholesale choice beef Wednesday morning was
$194.67 per cwt, $1.58 higher than Friday, according to the U.S.
Department of Agriculture.
Price comparisons were made to Friday’s data because
government offices were closed on Monday in observance of the
Christmas holiday.
Grocers are gearing up to feature certain cuts of beef early
next year, hoping to appeal to shoppers focused on paying off
post-Christmas credit card debt, a trader said.
Another encouraging sign for the CME live cattle market was
USDA’s comprehensive weekly beef export data. It showed sales
for last week at 21,246 tonnes versus 19,087 tonnes the week
before and 12,084 tonnes a year ago.
CME live cattle spot December closed up 0.175 cent
per lb at 129.350 cents. Most-actively traded February
ended at 133.775 cents, 0.550 cent higher.
Feeder cattle futures moved up with the higher live cattle
market, and on lower corn prices which eased feed input costs.
January closed 0.575 cent per lb higher at 152.075
cents. March was up 0.600 cent to 154.875 cents.
HOGS WILT ON PROFIT-TAKING
CME hogs weakened as traders took profits, offsetting
initial gains driven by wintry weather across the eastern
Midwest that lifted hog prices in the region.
The storm moving through the eastern Corn Belt deteriorated
road conditions and created problems transporting livestock,
said Allendale’s Georgy.
USDA data Wednesday morning showed hog prices in the eastern
Midwest direct market up $1.50 per cwt from Friday to $78.72,
said USDA.
While some packers may be hard pressed to book hogs in the
storm’s wake, others have covered their supply needs into next
week’s New Year’s holiday-shortened workweek.
Traders also exercised caution before USDA’s quarterly hogs
report on Friday.
Analysts expect the data to show only a modest decline in
the nation’s hog herd after historic drought drove feed costs to
record highs last summer.
Deep-deferred months led declines in futures due to spreads,
with the view that producers may not aggressively cull their
herds if corn prices continue to decline.
CME hogs for February settled down 0.100 cent per lb
at 87.450 cents. April ended at 91.475 cents, off 0.175
cent.
(editing by Jim Marshall)
