Commodities Friday Oct. 10, 1986 : Cattle Prices Close Higher

Cattle futures prices closed out the week on a strong note Friday and appear ready to follow a tight cash market significantly higher, analysts said.

All the advances were in the nearby delivery months, with October gaining .52 cent a pound on the Chicago Mercantile Exchange.

In some other markets, coffee futures collapsed with the nearby contract down by more than three times the limit allowed for the distant deliveries; and heating oil was off sharply.

While trading in the livestock pits at the Chicago Mercantile Exchange was rather thin, “cattle put on an outstanding price performance,” said Philip Stanley, an analyst in Chicago with Thomson McKinnon Securities.

The October contract closed near the weekly highs and signs from the cash market are pointing upward, he said.

Packers were paying $62 a hundredweight and expectations are for $63 cash cattle next week.

By comparison, hog futures were struggling but held up well in view of worries over increased supplies and expectations of slightly lower prices on Monday, Stanley said.