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CME update: cattle futures dip, reacting to pressure from the hog market and restaurant closures

29 June 2020

CME live cattle futures dropped on 26 June as traders faced questions about beef demand as COVID-19-related restaurant closures appear more likely.

Reuters reports that the economic concerns over rising coronavirus infections dragged down both cattle and lean hog futures. The commodities finished 26 June flat to mostly lower. The dip was mirrored in Wall Street’s major indexes as well, which tumbled more than 2 percent on Friday.

Livestock markets have been hammered by coronavirus-related closures of restaurants and food service businesses, key outlets for items like steak and high-end cuts of beef. Closures at packing plants have also backed up supplies of market-ready animals, pressuring cash markets.

The industry is now facing concerns about beef demand as some states have stalled or reversed their reopening plans due to rising coronavirus infections.

CME August live cattle ended down 0.050 cent at 96.025 cents per pound. Deferred-month contracts were down as much as 0.975 cent. August feeder cattle fell 0.650 cent to 132.600 cents per pound.

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