Live cattle futures bounce back on bargain buying - CME

Lean hog futures slip
calendar icon 15 June 2022
clock icon 2 minute read

Chicago Mercantile Exchange (CME) live cattle futures finished higher on Tuesday in a rebound from recent losses, reported Reuters, citing brokers.

However, concerns about the risk of beef demand falling due to US inflation continued to hang over the market, analysts said. They warn rising prices may increasingly push consumers to eat cheaper food instead of pricey steaks and cuts of beef.

CME June live cattle ended 1.2 cents higher at 135.200 cents. The contract bounced after dropping on Monday to its lowest price since 2 June.

Most-active August live cattle edged up 0.200 cent to close at 134.075 cents, a day after dropping to its lowest price since 1 June.

CME feeder cattle futures were under mild pressure, with the August contract ending down 0.025 cent at 171.300 cents per pound. The contract stayed within Monday's trading range.

Demand for cattle from US beef processors has been solid, with the US Department of Agriculture (USDA) estimating that 122,000 cattle were slaughtered on Tuesday. That is steady from a year ago. Processors slaughtered an estimated 474,000 hogs, down from 486,000 hogs a year earlier, the USDA said. 

CME July lean hog futures slipped 0.050 cent to end at 106.625 cents per pound. The contract reached its highest price since 8 June before closing lower.

The USDA is projecting a decline in both US pork and beef exports in 2023. US pork shipments through April were down about 20% from last year, largely due to reduced exports to top-consumer China.

In Brazil, revenue from poultry exports in May reached a monthly record of $904.6 million, up 37.8% from the previous year, the Brazilian Association of Animal Protein said. China was the main buyer, importing 50,200 tonnes, despite its orders dropping 8.8% from the previous May.

Source: Reuters

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