USA August live-cattle futures fell 1.05 cents.
Outside markets are also having an effect on trade in cattle futures
U.S A. cattle futures slid Friday, ahead of a closely-watched federal supply report expected to show beef production picking up in the months ahead.
August live-cattle futures fell 1.05 cents, or 0.7%, to $1.45425 a pound at the Chicago Mercantile Exchange, marking a 2% drop over the course of the week. Most-active live cattle for October shed 2.475 cents, to $1.4385 a pound. Feeder- cattle futures for August declined 1.2 cents, to $2.1200 a pound, down 0.9% from last week's closing price. Other feeder-cattle contracts slid by the exchange-imposed daily limit of 4.5 cents.
Investors were squaring positions ahead of the monthly cattle-on-feed inventory report due out later Friday that analysts expected to shed light on the extent to which feed yard operators purchased a growing number of light-weight animals last month, after months of lower placement activity into feedlots. The net effect of the build-up of cattle in the nation's feed yards could produce a larger number of market-ready cattle late this winter and early next year, adding to supplies of beef.
"I think this afternoon's report could be a negative surprise" for projected cattle prices, said Dennis Smith, a commodities broker at Archer Financial Services in Chicago.
Also weighing on the market, Mr. Smith noted, was a recent dip in wholesale beef prices, signalling to some that demand for burgers and steaks is beginning to soften as the summer winds down.
Outside markets are also having an effect on trade in cattle futures, analysts said, as commodities ranging from crude oil to corn are all weakening.
Hog futures are also falling. October hogs slid 1.925 cents, to 62.825 cents a pound, the lowest closing price for a front-month contract in four months. December hog futures dropped 2.3 cents, to 59 cents a pound.
