CME update: live cattle futures extend their slide
US live cattle futures fell on 19 April, extending their slight to eight straight sessions on long liquidation and signs that surging wholesale beef prices may have reached a seasonal top.
20 April 2021
1 minute read
Reuters reports that feeder cattle futures felt additional pressure from a jump in Chicago Board of Trade corn futures, a sign of rising feed costs.
CME June live cattle settled down 0.575 cent on Monday at 118.600 cents per pound, and August feeder cattle futures fell 1.775 cents to end at 152.775 cents per pound.
The June live cattle contract has been in retreat since setting a life-of-contract high on 8 April, buoyed by rising beef prices tied to the approach of the summer grilling season and optimism about the US economy.
However, the US Department of Agriculture reported a drop in wholesale prices for choice cuts of beef on 16 April, and the reading barely budged on Monday, rising $0.12 to $276.17 per cwt, according to government data.
"The boxed beef feels like it's topping out. I think the bullish news got dialed in too quickly," said Don Roose, president of Iowa-based US Commodities.
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Source: Reuters
