CHICAGO, June 3 (Reuters) - Chicago Mercantile Exchange
(CME) feeder cattle futures gained on Thursday, lifted by lower
corn futures and firmer back-month live cattle.
"From the feeder buyers perspective, you had higher cattle
and lower corn, so thats a good deal," said Alan Brugler,
president of Brugler Marketing.
CME August feeder cattle closed 1.350 cents firmer at
152.950 cents per pound.
Nearby August live cattle futures ended 0.725 cents
lower at 118.525 cents per pound, while December live cattle
added 1.775 cents to 129.825 cents per pound.
Chicago Board of trade's most-active corn futures
dipped 13 cents to $6.62 per bushel.
Cattle slaughter resumed its normal pace on Thursday after a
cyberattack shut down operations at meatpacker JBS SA
over the weekend.
Beef packers slaughtered 120,000 head on Thursday, up 4,000
from a year ago but still down from 1,000 head a week
Wholesale beef prices jumped after news of the shutdown, but
quieted Thursday, with select cuts climbing $1.28 to $313.16 per
cwt., while choice cuts added 39 cents to $340.55 per cwt,
according to the U.S. Department of Agriculture.
JBS and three other beef packers in the United States
account for the purchase and slaughter of about 85% of all fed
Meanwhile, hog futures climbed as firm demand pushes futures
higher, while high grain prices keep hog producers from adding
new hogs that could ease tight inventories.
CME July lean hog futures added 0.525 cents to
119.000 cents per pound, while nearly every contract found
The CME lean hog index, a two-day weighted average of cash
prices, climbed to $113.75 per cwt.
"Youve got tight inventories and good domestic demand and
the export markets not allowing any slack thats normally
where your price rationing would come in," said Brugler.
Hog slaughter was at 470,000 head, down 11,000 from a week
prior but up 30,000 from a year ago.
Hog herd expansion has been stalled by higher feed costs and
long-term demand uncertainty, Brugler noted.
"Everybodys afraid of paying too much for feeder pigs and
too much for corn, then six months later, theyre not worth
anything," he said.
(Reporting by Christopher Walljasper; editing by Richard