By Kelsey Gee
CHICAGO--U.S. cattle futures ended the session mixed Friday,
with the front-month contract lifted by hopes that demand is
strengthening after passing a seasonal low while others were
weighed down by profit-taking.
August live-cattle futures picked up 0.475 cent, or 0.3%, to
$1.4570 a pound at the Chicago Mercantile Exchange, up 1.9% from
last week's closing price. Most-active cattle futures for October
shed 0.525 cent to $1.45925 a pound.
Feeder-cattle futures for August fell 0.5 cent to $2.10725 a
pound, marking a 0.5% increase on the week.
The cattle market has recovered with modest gains this week
following a steep drop to the lowest levels in a year, boosted by
hopes that demand for deeply discounted livestock and meat is on
the rebound. 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. Gains in the beef market this week have served as
evidence of the seasonal trend for some investors again early
Friday.
Other cattle contracts, meanwhile, are slipping as investors
take profits on the week's climb.
"We're still seeing the August contract hold up, which seems to
center on the idea that that's how the seasonal pattern is going to
play out," said Adam Stout, an analyst with brokerage INTL FCStone
in Kansas City, Mo.
Hog futures slipped after jumping to the highest levels in two
weeks on Wednesday, as investors continued to assess the strength
of demand in the face of record-large pork production. August hog
futures eased 1.175 cents to 78.50 cents a pound, a 1% gain from
last week. Hogs for October fell 1.975 cents to 63.725 cents a
pound
"There's going to be an incredible year-over-year increase in
pork supplies, and just a lot of protein out there in general,
which makes it challenging to get too bullish" in cattle or hog
futures, the analyst added.
-Write to Kelsey Gee at kelsey.gee@wsj.com
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