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In other markets, lean hogs were sharply lower while bellies ended mostly weaker.
Cattle futures opened lower as the market followed overnight DJIA futures down but rebounded with the DJIA mid-morning rally, brokers said. As prices rallied, there was some added buying interest from hedged feeders who expected to sell cattle this week, they said.
Around the close, there were reports of isolated sales at $87 per hundredweight on a live basis and $138 dressed, below last week's dominant $90 live and $140 dressed prices.
Brokers said traders remained concerned about the overall economy, and they don't have a good feel about where market relationships should be. In the absence of this direction, they followed the DJIA instead of cattle market fundamentals.
Feeder cattle futures also closed lower, defying the logic that might be associated with a lower corn market, a broker said. Again, traders seemed more concerned with economic issues than with feeder cattle market fundamentals and gleaned price direction from the live cattle pit and from the DJIA.
December cattle closed 52 points lower at 83.82 cents a pound, and February was off 87 at 84.07. January feeders were down 65 points at 88.35 cents, and March was off 105 at 88.05.
Pork Complex
Lean hog futures were sharply lower from the opening bell and fell further to one-week lows in most contracts. Some closed at 1 1/2-week lows.
A combination of bearish factors weighed on prices, analysts and brokers said. Most-active February and the forward contracts held wide premiums to cash prices, and there were concerns that the cash hog markets could soften into next week. Also, some traders were disappointed with the cash market's performance as it appears to have stalled after they had expected prices to be stronger throughout the week, a broker said.
Most contracts gapped lower on the opening bell, and the market broke through moving average support levels. Previously placed sell orders, or stops, were tripped, which further pressured prices.
Concerns about wholesale pork values next week also weighed on futures prices. Next week marks the period in which ham processors will complete their orders for the holidays. Once they pull back on production, fresh ham prices are expected to decline, and some analysts and traders are concerned that prices for the other pork cuts may not advance enough to offset the expected declines in ham prices.
December hogs closed down 80 points at 57.57 cents a pound. February hogs closed off 110 points at 64.37 cents.
February pork bellies were lower as well but rallied from a 1 1/2-week low hit earlier in the session to trim its losses to just 12 points and close at 92.00 cents. July pork bellies settled higher, the only contract in the complex to do so.
-By Lester Aldrich and Curt Thacker; Dow Jones Newswires; 913-322-5179; lester.aldrich@dowjones.com
(END) Dow Jones Newswires
12-03-08 1521ET
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