Correction to Cattle Futures Market Story on Sept. 13
Cattle futures rose to a four-week high, changing course as cash-market prices steadied.
Meatpackers paid $104.75 per 100 pounds live for one lot of cattle at Wednesday's morning online Fed Cattle Exchange auction. Only 128 cattle out of over 1,000 listed sold as feedlots held out for higher prices.
That was following up from trade at $104 a pound live and $165 dressed a day earlier in Iowa and Minnesota, according to the U.S. Department of Agriculture.
The trade so far suggested cash prices would continue stabilizing after weeks of losses pressured the broader cattle futures market.
"The market hasn't fallen out of bed," said Troy Vetterkind, president of Vetterkind Cattle Brokerage in Thorp, Wis., referring to the futures trade. "It probably shouldn't as it feels like the cash fat cattle trade isn't going to be any worse than steady this week."
Cattle futures initially fell before rebounding. October contracts at the Chicago Mercantile Exchange rose 1.2% to $1.0755 a pound, the highest close since Aug. 16. Feeder cattle futures were also higher.
Meatpackers will likely need to restock on slaughter-ready cattle supplies this week after several weeks of lighter buying, Mr. Vetterkind said. The bulk of the cash trade typically takes place later in the week.
Hog futures, meanwhile, also rose after falling sharply at the opening on Wednesday. Analysts said prices had broken through technical support indicators after falling over 3% on Tuesday.
But lower prices found renewed buying interest, and CME October lean hog contracts eventually closed 0.2% higher at 59.575 cents a pound.
Analysts say large cash hog supplies will still pressure the market. Wholesale pork prices, however, rose $1 to $81.41 per 100 pounds on Wednesday morning, on track to end five consecutive days of losses.
Write to Benjamin Parkin at benjamin.parkin@wsj.com
Cattle futures rose to a four-week high, changing course as cash-market prices steadied.
Meatpackers paid $104.75 per 100 pounds live for one lot of cattle at Wednesday's morning online Fed Cattle Exchange auction. Only 128 cattle out of over 1,000 listed sold as feedlots held out for higher prices.
That was following up from trade at $104 per 100 pounds live and $165 dressed a day earlier in Iowa and Minnesota, according to the U.S. Department of Agriculture.
The trade so far suggested cash prices would continue stabilizing after weeks of losses pressured the broader cattle futures market.
"The market hasn't fallen out of bed," said Troy Vetterkind, president of Vetterkind Cattle Brokerage in Thorp, Wis., referring to the futures trade. "It probably shouldn't as it feels like the cash fat cattle trade isn't going to be any worse than steady this week."
Cattle futures initially fell before rebounding. October contracts at the Chicago Mercantile Exchange rose 1.2% to $1.0755 a pound, the highest close since Aug. 16. Feeder cattle futures were also higher.
Meatpackers will likely need to restock on slaughter-ready cattle supplies this week after several weeks of lighter buying, Mr. Vetterkind said. The bulk of the cash trade typically takes place later in the week.
Hog futures, meanwhile, also rose after falling sharply at the opening on Wednesday. Analysts said prices had broken through technical support indicators after falling over 3% on Tuesday.
But lower prices found renewed buying interest, and CME October lean hog contracts eventually closed 0.2% higher at 59.575 cents a pound.
Analysts say large cash hog supplies will still pressure the market. Wholesale pork prices, however, rose $1 to $81.41 per 100 pounds on Wednesday morning, on track to end five consecutive days of losses.
Write to Benjamin Parkin at benjamin.parkin@wsj.com
Corrections & Amplifications
This item was corrected at 6:17 p.m. ET on Fri., Sept., 15, 2017 to show that the unit prices are per 100 pounds, not per pounds.
That was following up from trade at $104 per 100 pounds live and $165 dressed a day earlier in Iowa and Minnesota, according to the U.S. Department of Agriculture. "Cattle Futures Rise to Multiweek High on Steady Cash Trade," published at 2:49 p.m. ET on Sept. 13, incorrectly stated the unit for the price as per pound in the third paragraph. The price is per 100 pounds. (Sept. 15)
(END) Dow Jones Newswires
September 15, 2017 18:30 ET (22:30 GMT)