Live cattle futures bounce from losses - CME
June lean hog futures end higher
17 May 2022
2 minute read
Chicago Mercantile Exchange (CME) live cattle futures ended higher on Monday in a rebound from recent losses, while feeder cattle futures stumbled under pressure from rising costs for grains used for livestock feed, reported Reuters.
Live cattle were technically oversold and due for a bounce, brokers said. Futures were also due to rally because they are at a discount to cash prices, they said.
Nearby June live cattle futures rose 1.1 cents to close at 133.175 cents per pound. Most-active August live cattle jumped 1.550 cents to end at 133.900 cents per pound, after dropping on Friday to its lowest price since November.
August feeder cattle slipped 0.600 cents to end at 167.425 cents per pound and touched a new low of 166.000 cents.
Rising futures prices for wheat and corn, used for feed, helped knock down feeder cattle, traders said.
Starting on 1 June, exchange owner CME Group will expand daily trading limits for live cattle to 5.75 cents from 5 cents as part of an annual resetting, according to a notice. Feeder cattle limits will increase to 7 cents from 6.25 cents.
In the hog market, meanwhile, futures prices ended higher, extending gains from Friday.
CME June lean hog futures ended up 3.075 cents at 103.825 cents per pound. July lean hogs closed 3.600 cents stronger at 104.800 cents per pound.
The market has rebounded after dropping on Thursday to its lowest prices since January, traders said.
US pork cutout values were mostly firmer. Carcasses were priced at $101.55 per cwt, up $0.38, while pork bellies climbed by $8.20 to $155.52 per cwt, the US Department of Agriculture said.
In other news, Mexico, an importer of US hams and other food, said it will waive import duties for one year on a range of household staples in a bid to curb inflation. Products on the government import list included pork and beef.
Source: Reuters
