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CHICAGO, Jan 8 (Reuters) – Chicago Mercantile Exchange cattle futures fell back on Wednesday in a technical reversal after reaching multi-month and lifetime highs the previous day, according to analysts.
CME February live cattle futures ended down 1.875 cents at 193.700 cents per pound. March feeder cattle settled down 2.950 cents at 264.975 cents per pound.
There was “just incredible amounts of open interest plowing into the market,” for several days, according to Cassie Fish, analyst and author of the Beef blog.
“Today it was just like the buying had been satiated,” said Fish.
Meanwhile, there was little negotiated cash cattle trade at Plains feedlot markets while boxed beef prices stayed higher, she said.
The U.S. Department of Agriculture reported that choice cuts of boxed beef on Wednesday afternoon rose $2.82 to $328.61 per hundredweight (cwt), while select cuts jumped $1.46 to $306.89 per cwt.
Meat packers spent another day in the red on Wednesday, losing an estimated $35.65 per head, compared with losses of $20.00 per head on Tuesday, according to livestock marketing advisory service HedgersEdge.com.
Cattle were pressured by a report that cited anonymous sources saying imports of feeder cattle from Mexico are expected to partially resume the week of Jan. 20 after a closure prompted by the discovery of the New World screwworm pest there.
it had not established that date for reopening.
CME February lean hogs settled lower for a ninth straight session, losing 0.300 cent at 79.475 cents per pound, hitting their lowest since Oct. 1.
“For months, pork demand has been really good,” said independent trader Dan Norcini. “But there’s been a temporary lull in demand and that’s allowed the cutout to waiver.”
Traders have also begun selling spot futures ahead of an upcoming index fund roll of positions known as the Goldman roll, he said.
(Reporting by Renee Hickman; Editing by Mohammed Safi Shamsi)
