LIVESTOCK-CME cattle futures mixed; hogs rise on short-covering
By P.J. Huffstutter
CHICAGO, Oct 15 (Reuters) - Chicago Mercantile Exchange feeder cattle futures fell on Friday, pressured by rising corn prices, while live cattle futures inched up as traders anticipated seeing the cash trade improve, traders said.
Meanwhile, lean hog futures rose on short-covering ahead of the weekend.
The cattle market has been battered by boxed beef prices slipping, and the beef sector has wrestled with bigger supplies for months.
The trade, however, has been expecting those trends to slowly shift as export and domestic demand grows, said Brian Hoops, president of Midwest Market Solutions.
Choice cuts of boxed beef prices rose by 97 cents to $281.29 per cwt, while select cuts were up 80 cents to $261.48 per cwt, according to the U.S. Department of Agriculture on Friday.
Still, concern over a stagnant U.S. economy, and whether that could sour consumer interest in more expensive cuts of meat this holiday season, is growing, Hoops said.
"We're seeing inflation at the highest in 13 years," Hoops said. "This winter, people are going to be paying more to heat their homes, pay more for gas in their cars. The question I have is, will that soften demand for beef?"
On Friday, the nearby October live cattle futures LCV1 settled just 0.225-cent higher at 125.975 per pound. And the most-active December live cattle futures LCZ1 settled up 0.675 cents at 130.975 per pound.
The nearby October feeder cattle futures FCV1 settled down 0.85 cent at 157.575 cents per pound. Most-active January feeder cattle contract FCF2 slipped 0.825 cent to 161.525 cents per pound.
Most-active December lean hogs LHZ1 settled up 0.950 cent at 78.275 cents per pound. February lean hogs LHG2 closed up 1.025 cents at 81.325 cents per pound.
(Reporting by P.J. Huffstutter; Editing by Shailesh Kuber)
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