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CME update: cattle futures weaken as demand uncertainty continues

04 September 2020

US feeder cattle futures hit their lowest point in over a month on 3 September as traders mulled US demand for beef.

Reuters reports that CME October live cattle futures ended down 0.550 cent at 103.925 cents per pound. October feeder cattle tumbled 1.125 cents to 138.325 cents per pound and touched their lowest price since 10 July.

Traders remain uncertain about US demand for beef after the summer grilling season comes to its traditional end on the Labour Day holiday on Monday 7 September. Beef and cattle prices are often weak this time of year as demand eases.

Closures of restaurants, school cafeterias and event spaces like hotel ballrooms due to the COVID-19 pandemic are making demand more uncertain, analysts said.

"I think the market is recognising that we're seeing this seasonal dip coming at us, and it's adjusting for that," said Altin Kalo, agricultural economist with Steiner Consulting.

Prices for choice cuts of boxed beef fell by $0.67 to $226.91 per cwt, while select cuts slid $0.79 to $213.03, according to the USDA.

Read more about this story here.

Source: Reuters



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