CME cattle jump as low US supply outweighs slow processing

By Tom Polansek CHICAGO, Sept 25 (Reuters) — Live cattle and feeder cattle futures galloped higher on the Chicago Mercantile Exchange on Friday as concerns about limited US inventories overshadowed processing disruptions, analysts said. The US Department of Agriculture highlighted low supplies a week ago by reporting that placements of cattle into US feedlots last month were the lowest August total in records dating to 1996. CME December live cattle rose 1.050 cents to close at 222.150 cents per pound on Friday. October feeder cattle jumped 3.175 cents to close at 334.925 cents per pound. Cattle slaughtering has declined this week as an immigration crackdown in southwestern Kansas has kept meatpacking workers away from beef plants. Shipments of thousands of cattle have been delayed, according to groups representing livestock producers. ICE did not comment, though some traders said they worried disruptions could extend into next week. "ICE’s targeting of these communities sows fear, instability, and chaos into the lives of those trying to make a living and feed our nation," said Milton Jones, president of the United Food and Commercial Workers International Union. "These disruptions directly impact the safety of all workers and the supply of beef." Meatpackers on Friday slaughtered an estimated 87,000 cattle, down 14% from a week earlier, according to the US Department of Agriculture. In CME's lean hog market, December futures slumped 0.450 cent to 69.025 cents per pound. USDA, in a report issued after trading ended on Thursday, said the total US hog inventory was 74.3 million head as of September 1, down 1.5% from a year earlier. Analysts expected a decline of 0.8%, according to a Reuters poll. After trading ended on Friday, USDA said stocks of frozen pork bellies on August 31 were down 35% from a month earlier and 1% from last year. (Reporting by Tom Polansek; Editing by Jonathan Ananda) ((mailto:Thomas.Polansek@thomsonreuters.com)