Commodities for Wednesday, Aug. 21, 1985 : Livestock Mostly Higher

Livestock and meat prices were mostly higher Wednesday on the Chicago Mercantile Exchange as traders began positioning themselves in advance of a government report on cattle inventory.

Cattle prices advanced despite concern that beef demand has dropped off and cattle surpluses might be building on feedlots, said Tom Morgan, a livestock analyst with Heinold Commodities.

However, Morgan noted that the Agriculture Department’s report on the number of cattle on feed in the seven major beef producing states is to be released Friday, and most analysts expect a decline of 4% to 6% from year-earlier levels.

He said such a figure probably would support cattle prices in the long term, although supplies available for consumption in the next few weeks remain burdensome.

Hog prices advanced despite a continuing large slaughter and mixed results on cash markets, Morgan said.

Uncertainty also was a factor, as labor negotiations at several meatpacking plants are under way and a strike already has started at one.

However, prices have fallen sharply in recent sessions, and many analysts felt the market was due for a recovery and bought back contracts that they had sold previously.