CHICAGO, Oct 23 (Reuters) - Chicago Mercantile Exchange
cattle futures turned lower on Wednesday, amid a flurry of
technical selling and uncertainty whether consumer demand for
beef would chill after an E. coli outbreak was linked to
McDonald's Quarter Pounder burgers, traders said.
The outbreak has sickened 49 people in the U.S., with 10
hospitalized due to serious complications and one dead,
according to the U.S. Centers for Disease Control and
Prevention.
December live cattle ended down 0.25 cent at 187.875
cents per pound, while November feeder cattle futures
settled down 1.700 cents at 247.225 cents per pound.
Meanwhile, CME December lean hog futures rose 1.05
cents to finish at 80.175 cents per pound, on a round of
technical buying as wholesale prices have been staying
unseasonably high, analysts said.
While cattle futures started the day sharply down, much of
Wednesday's choppy trade was due to technical selling and
position adjusting, said Austin Schroeder, analyst with Brugler
Marketing & Management.
Wholesale beef prices were mixed, with the choice boxed beef
cutout falling $2.55 to $321.41 per hundredweight, the USDA
reported Wednesday afternoon. Select boxed beef prices rose
$0.97 cent to $295.77 per cwt.
"We're approaching the summer highs in some of these live
cattle contracts," Schroeder said. "From a technical standpoint
you might be seeing a little bit of a correction."
But news of the E. coli outbreak did add uncertainty to the
market, analysts said. The USDA said on Wednesday it was still
working to determine the safety of ground beef used by
McDonald's, but that the likely cause of the outbreak was
slivered onions.
"There could be some potential for demand to be diverted
away from beef," Schroeder said.
On the other hand, Schroeder said, consumers might simply
switch away from McDonald's. Previous E. coli outbreaks at big
U.S. fast-food chains have caused consumers to shun those chains
for months.