CME update: cattle futures sink to July lows as demand slackens
CME live cattle futures dropped to their lowest prices since July on 2 September as uncertainty about how much US demand will decline pressured prices.
3 September 2020
1 minute read
Reuters reports that uncertainty about demand stems from the end of the summer grilling season. Beef and cattle prices often weaken during this time as demand slows. However, due to widespread closures of the food service sector across the United States due to COVID-19, analysts say the market is more uncertain.
Some traders are starting to step away from the market ahead of the Labour Day holiday on Monday, considered the traditional end of summer, brokers said. Their absence can make the market more volatile.
"The real concern is what's going to happen to demand after Labour Day?" a market analyst said. "With so many restaurants and food services still under restrictions, will we maintain demand?"
Prices for choice cuts of boxed beef fell by $1.11 to $227.23 per cwt, according to US Department of Agriculture data. Prices for select cuts rose slightly.
Chicago Mercantile Exchange October live cattle futures ended down 1.000 cent at 104.475 cents per pound and hit their lowest price since 15 July.
October feeder cattle slipped 1.200 cents to 139.450 cents per pound.
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Source: Reuters
