By Kelsey Gee
CHICAGO--U.S. cattle futures ended the session narrowly lower
Wednesday, pressured by profit-taking after a rally the previous
session sent prices to the highest levels in one week.
August live-cattle futures slid 0.125 cent, or 0.1%, to $1.44925
a pound at the Chicago Mercantile Exchange. Live cattle for October
fell 0.325 cent to $1.46475 a pound.
The cattle market last week slid to the lowest levels in a year
amid a steep drop in the value of beef, and traders are now working
to digest signs of demand for deeply discounted livestock and meat.
Some analysts contend that retail buying interest in red meat could
be turning a corner after purchases fell off during the hottest
months of the year, when consumers tend to prefer lighter fare.
Wholesale beef prices this week have edged higher, serving
evidence of the seasonal trend for some market participants, while
others remain on the sidelines awaiting a more steady increase in
value.
"Between now and [Labor Day] the last summer holiday, there's a
much better chance for the cattle market to go back up and
recapture" prices last traded at the start of the season, said Mike
Zuzolo, president of advisory firm Global Commodity Analytics in
Atchison, Kan.
Longer term, the analyst remains cautious about the market
because of a potential uptick in beef supplies during the fourth
quarter.
The feeder-cattle market got a boost from declining projected
feed costs, as investors bet that feedyard operators will be more
willing to pay up for light-weight animals if it is less expensive
to grow them to market weight. Corn prices Wednesday were easing as
favorable weather diminishes concerns about damage to the nation's
crops during a critical phase of production.
Feeder-cattle futures for August picked up 0.225 cent to
$2.11475 a pound, and other contracts all gained.
Hog futures climbed on optimism that demand is strengthening
across the meat case.
August hog futures picked up 0.375 cent to 79.85 cents a pound,
a two-week high. Hog futures for October advanced 1.025 cents to
66.075 cents a pound.
Write to Kelsey Gee at kelsey.gee@wsj.com
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