CME live cattle futures gain with cash prices


Oct 17 (Reuters) - CME live cattle futures moved upward onThursday as higher cash prices overshadowed new deliveriesreported by the exchange late on Wednesday, traders and analystssaid.

* On Wednesday packers in Texas and Kansas paid $129 perhundredweight (cwt) for cattle, up $1 from last week, feedlotsources said.

* Late Wednesday, the CME posted 23 new deliveries againstthe spot October contract that will expire on Oct 31.

* Those deliveries will wind up in the hands of someone willing to accept physical delivery of cattle, a trader said.

* CME livestock market investors were relieved that U.S.lawmakers reached a short-term deal to reopen the federalgovernment and avoid a U.S. debt default.

* "We'll finally get a real look at official USDA hog andcattle price information after pretty much operating in a vacuumover the past two weeks," a trader said.

* The USDA's cattle-on-feed report, which was scheduled forrelease on Friday, will be postponed due to the lapse in federalfunding, the agency said on Thursday.

* The National Agricultural Statistics Service is assessingits data collection plans and evaluating the timing of upcomingreports, the USDA said.

* Most analysts polled by Reuters for the cattle reportsaid feedlot placements last month likely rose 1.6 percent froma year ago as corn costs declined.

LIVE CATTLE - At 9:25 a.m. CDT (1425 GMT), October was 1.000 cent higher at 130.300 cents per lb. December was at 133.700 cents, up 0.450 cent.

* Fewer cattle available for sale this week forced packersto spend more for supplies, an analyst said. There is a chanceof $130 per cwt sales in Nebraska as feedlots there hold out formore money, he said.

* The recent rise in wholesale beef prices was credited forthis week's cash support. But some wonder if demand forexpensive beef will keep pace with near-record cash prices.

* There is a possibility that consumers may switch to porkor chicken if beef costs continue to rise, the analyst said.

* FEEDER CATTLE - October rose 0.925 cent to 166.925cents per lb, while November was at 168.775 cents, 1.050cents higher.

* Higher CME live cattle pulled up feeder cattle futures.

LEAN HOGS - December was at 89.425 cents, up 0.625cents and hit a new contract high of 89.900 cents. February gained 0.450 cent to 91.100 cents after marking a newcontract high of 91.525 cents.

* More fund buying and short-covering pushed CME hogs to newcontract highs for a second day in a row.

* The December contract's discount to cash hog prices and toCME's settlement price of 90.62 cents for the expired October2013 hog contract lured buyers, he said.

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