CHICAGO, March 12 (Reuters) - Chicago Mercantile Exchange cattle futures firmed on Tuesday, amid a flurry of technical trading, weakness in corn futures and strength in the wholesale beef pricing, market analysts said.
The U.S. Department of Agriculture (USDA) reported on
Tuesday afternoon that wholesale beef prices continued to rise,
with the choice boxed beef cutout at $310.59 per hundredweight
(cwt), up $1.71 from Monday.
Bullish support from the technical trading continued in the most-active April live cattle contract, which settled above June live cattle for another session.
The cash cattle market has been relatively quiet, traders said, though prices for cash cattle this week are expected to be steady to higher - with prices possibly reaching some of the highs of 2023.
Prices are expected to go higher as packers and end-buyers, such as restaurant suppliers and grocery stores, begin to prepare for the summer grilling season, said Don Roose, president of U.S. Commodities Inc.
Consumer demand also should firm ahead of the U.S. holiday Mother's Day in May, said independent livestock trader Dan Norcini.
"People want to take moms out to eat so they don't have to cook, so restaurants have to start stocking up on meat like steaks and pork chops," Norcini said.
Beef packers continue to see their margins firmly in the red which, according to some market analysts, may be why the pace of cattle slaughter rates have been somewhat sluggish.
The U.S. Department of Agriculture said meatpackers slaughtered an estimated 122,000 cattle on Tuesday, steady from a week ago, but down from 126,552 cattle a year earlier.
CME benchmark April live cattle settled up 0.650-cent at 188.250 cents per pound. June live cattle futures settled up 0.925 cent at 183.950 cents per pound.
CME April feeder cattle futures rose 1.025 cents, settling at 254.125 cents per pound.
CME most-active April lean hogs settled up 2.075 cents at 85.350 cents per pound, while June hogs rose 1.150 cents to end at 102.200 cents per pound. (Reporting By P.J. Huffstutter in Chicago; Editing by Krishna Chandra Eluri)
