By Kelsey Gee
CHICAGO--U.S. live-cattle futures are all lower Monday, as
traders give back gains won late last week amid signals of stout
demand from the cash markets.
August live-cattle futures are down 1.125 cents, or 0.7%, to
$1.5010 a pound at the Chicago Mercantile Exchange, after rising
1.8% over the past week. October live-cattle futures recently shed
1.05 cent to $1.53075 a pound.
Profit-taking is capping furthers gains in futures after the
market jumped on news of packers paying up for cattle in the cash
markets, with sales as high as $1.53 1/2 a pound live by the end of
the day Thursday. Steady gains in the price retailers were willing
to pay for wholesale beef products following a sharp fall in the
call market has widened margins for processors, emboldening them to
pay up to cover supply needs for burgers and steaks in the week
ahead.
Some analysts suspect that last week's bounce in cash cattle
prices could be short-lived, however. Demand for red meat typically
softens after the Fourth of July, the top sales period for grilling
staples like burgers, steaks and ribs.
"The old cliché of 'the dog days of summer' still applies in the
cattle market," said Larry Hicks, owner of agricultural-advisory
firm CattleHedging.com in Centennial, Colo. "When it's too hot,
demand suffers as people don't barbecue or go out as much."
Hog futures are mixed, as ample supplies are also met with
cooler post-Fourth of July holiday demand.
July hogs are up 0.175 cent, or 0.2%, to 78.95 cents a pound,
after climbing 4.4% over the course of the past week. Most-active
futures for August are down 0.2 cent to 76.175 a pound.
Write to Kelsey Gee at kelsey.gee@wsj.com
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