Cattle futures down amid concerns over packer demand - CME
August lean hog futures settle down
2 July 2024
2 minute read
By: Chicago Mercantile Exchange (CME) live and feeder cattle futures fell on Monday on expectations for a seasonal dip in demand for livestock from meatpackers, Reuters reported, citing traders.
Packers slaughtered an estimated 115,000 cattle, down from 119,000 on Friday and unchanged from a week ago, according to US government data.
"As you get closer to the fourth (of July), demand usually tapers off," said Don Roose, president of US Commodities.
Cargill, one the four major US beef processors, said it suspended production at a beef plant in Dodge City, Kansas, after weekend rains caused part of the roof to collapse.
A prolonged closure could threaten demand for cattle for slaughtering, though it would use its broad supply chain to minimize disruptions to customers and producers if necessary, Cargill said.
CME August live cattle settled 1.15 cents lower at 184.275 cents per pound. CME August feeder cattle ended down 1.925 cents to 257.375 cents per pound.
Wholesale boxed beef prices firmed in the US Department of Agriculture's afternoon cutout report. Choice cuts were up $2.86 at $329.18 per hundredweight (cwt), while select cuts rose $1.91 to $306.41 per cwt.
"Consumers continue to buy expensive beef," Roose said. "They're buying beef at the expense of pork."
The USDA reported lower pork cutout values. Carcasses were priced at $95.41 per cwt, down $2.48, while bellies slid $6.41.
CME August lean hog futures settled down 1.325 cents to 88.175 cents per pound.
