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CME live cattle futures move up with beef quotes

Oct 22 (Reuters) - CME live cattle futures edged upward on Tuesday, lifted by short-covering following Monday's strong wholesale beef prices, traders and analysts said.

* Late on Monday, the average wholesale choice beef price, or cutout, was at $198.29 per hundredweight (cwt), up $2.00 from Friday. Select cuts rose $1.67 to $181.65, according to the U.S. Department of Agriculture.

* Wholesale beef demand typically improves for select cuts during the fall, an analyst said. And fewer cattle this year than a year ago means grocers are competing for less beef, he said.

* No new deliveries and anticipation of steady cash cattle prices for this week provided more October live cattle futures support.

* And traders bought deferred CME live cattle futures in anticipation of tight supplies.

* The USDA delayed its monthly cattle-on-feed report, which was initially scheduled for Oct. 18, to Oct. 31. The government will also postpone its cold storage report from Tuesday, Oct. 22, to Oct. 31. [ID: nL1N0I72CS]


LIVE CATTLE - At 8:37 a.m. CDT (1337 GMT), October was 0.325 cent higher at 130.450 cents per lb. December was at 132.275 cents, up 0.375 cent.

* Isolated cash cattle asking prices in the U.S. Plains were at $131 per cwt with no response from buyers, feedlot sources said. Cash-basis cattle last week moved at mostly $129 to $130.

* It is understandable for feedlots to ask $131 for cattle after getting near-record prices of $130 for them last week, a trader said.

* Reduced numbers of cattle available for sale can lend cash price support.

* Some packers curtailed slaughter to avoid spending more for supplies and to stabilize their eroding operating margins.


* FEEDER CATTLE - October slipped 0.150 cent to 165.675 cents per lb, while November was at 166.625 cents, up 0.225 cent.

* CME October feeder cattle is guided by the exchange's feeder cattle index, which was at 164.81 cents.

* Remaining feeder cattle futures drew support from the firm CME live cattle market. Spread traders sold October futures and bought deferred months.


LEAN HOGS - December was at 88.750 cents, 1.275 cents higher, and February rose 0.825 cent to 90.475 cents.

* Speculative traders bought CME December hogs with the view that the contract is undervalued based on the exchange's soon-to-be-released hog index, a trader said.

* The CME said it would on Tuesday issue its first lean hog index since the exchange suspended the data due to the partial U.S. government shutdown.

* Hog futures also benefited from short-covering and late-Monday's wholesale pork price rebound, the trader said.

* Investors continue to keep an eye on lower-trending cash hog prices in the midst of a seasonal increase in supplies.