COMMODITIES : Livestock Futures Prices Plunge in Nervous Market

Futures prices for livestock plunged Monday on the Chicago Mercantile Exchange, and analysts said “nervousness” about slaughter house shutdowns was to blame.

Prices fell as much as 127 points, or 1.27 cents, and only one contract, live hogs for delivery in December, managed to finish higher.

Selling interest in cattle was heightened by inactive cash markets, traders said.

“Packers, with squeezed margins, have reduced their slaughters. They’re closing some plants, and there’s nervousness in the market,” said Tom Morgan, head of Sterling Research Corp. of Arlington Heights, Ill.

Live hog prices followed a lower cash market, and prices for frozen pork bellies followed the lead of traders in the live hog pit, Morgan said.

Live cattle settled 0.40 cent to 1.12 cents lower, with the contract for delivery in April at 71.50 cents a pound; feeder cattle were 0.45 cent higher to 1.27 cents lower, with March at 79.75 cents a pound; live hogs were 0.05 cent higher to 1.07 cents lower, with April at 43.25 cents a pound, and frozen pork bellies were 0.25 cent to 0.63 cent higher, with March at 51.85 cents a pound.

Soybean Contracts Higher

Futures prices for corn and soybeans were up sharply while wheat prices were mixed on the Chicago Board of Trade.

Some soybean contracts closed more than 10 cents above Friday’s prices.

Lighter-than-expected delivery notices for soybeans helped support higher soybean prices, said Jerry Gidel, a grains analyst in Chicago for G. H. Miller & Co.

Wheat prices were supported by import interest from the Philippines, 175,000 tons worth, and talk that the Soviets may be back in the market, Gidel said.

Corn prices were restrained somewhat by lower-than-expected exports for that commodity, said Steve Freed, a grains analyst in Chicago with Dean Witter Reynolds Inc.

Wheat settled 1.25 cents lower to 1.25 cents higher, with the contract for delivery in March at $3.155 a bushel; corn was 2.25 cents to 3 cents higher, with March at $2.0375 a bushel; oats were 2.25 cents to 4.25 cents higher, with March at $1.945 a bushel, and soybeans were 8.50 cents to 10.50 cents higher, with March at $6.36 a bushel.

Energy prices finished higher on moderate volume at the New York Mercantile Exchange.

OPEC Report a Factor

The heating oil contract for March rose 1.46 cents because it had been oversold at the end of last week, said Peter Beutel, a petroleum analyst in New York with Elders Future Inc.

Crude oil prices were supported by a recently published report that production by the Organization of Petroleum Exporting Countries was lower than expected, he said.

Crude oil settled 12 cents to 23 cents higher, with the contract for delivery in February at $15.49 a barrel; heating oil was 0.38 cent to 1.46 cents higher, with February at 45.85 cents a gallon, and unleaded gasoline was 0.41 cent to 0.70 cent higher, with March at 45.71 cents a gallon.

Gold and silver prices climbed higher on the Commodity Exchange in New York.

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