CME update: cattle futures fall on demand concerns
US cattle futures ended weaker on 16 April, with the June live contract notching its seventh straight losing session.
19 April 2021
1 minute read
Reuters reports that the market was correcting from a sharp rally fueled by expectations of demand from restaurants picking up as COVID-19 restrictions were eased in the United States. But the reopening has slowed in many areas due to rising numbers of infections.
Additionally, forecasts for cold weather across much of the US Midwest will delay grilling season.
"We got a little bit ahead of ourselves," said Don Roose, president of US Commodities in West Des Moines, Iowa. "For a grilling season you need warm weather and it is a little bit cool; that slows down stuff a bit."
CME June live cattle ended 0.475 cent lower at 119.175 cents per pound. August feeder cattle futures were down 1.45 cents at 154.15 cents per pound.
Overall, US meat processors slaughtered 113,000 cattle on 15 April, up from 111,000 cattle a week earlier, unchanged from a week ago, according to USDA.
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Source: Reuters
