Cattle futures fall amid fund selling, lower wholesale prices - CME
Lean hog futures rise
2 August 2024
2 minute read
By: Chicago Mercantile Exchange (CME) cattle futures turned lower on Thursday, with the most-active feeder cattle contract falling more than 2%, amid a flurry of fund selling and signs of weakening consumer demand, reported Reuters.
Wholesale beef prices dropped on Thursday morning, with the US Department of Agriculture reporting choice boxed beef cutout prices down $1.34 to $313.43 per hundredweight (cwt) and select cutout prices down $1.12 to $299.04 per cwt.
"We're seeing pressure on cattle and no fresh news to move things here," Matthew Wiegand, consultant at Futures One, said. "Demand is lackluster."
CME August live cattle futures ended Wednesday down 2.330 cents at 184.800 cents per pound, while most-active October live cattle futures settled down 2.950 cents at 183.725 cents per pound.
CME August feeders ended down 4.100 cents at 253.150 cents per pound, while most-active September feeders closed down 5.300 cents at 251.800 cents per pound.
Strength in the US dollar also weighed on cattle futures, traders said, as a stronger dollar can make US commodities less attractive to export buyers.
But prices in the cash cattle market remained relatively steady, as feedlots and other cattle sellers begin moving their market-ready cattle as temperatures turn hot. Packer margins remained in the red.
"The cash trade is not reflecting what the board is doing," Wiegand said.
Meanwhile, firming wholesale pork prices gave lean hog futures a lift on the day, as traders noted that price-conscious consumers may be turning to pork over pricier beef cuts.
USDA the pork carcass cutout at $107.04 per cwt, up $2.16 from Wednesday. Pork bellies climbed by $1.03, to $153.39 per cwt, and ham cutout prices also turned higher.
CME August lean hog futures ended 0.870 cent higher at 93.150 cents per pound. October lean hog futures ended up 1.100 cents at 77.025 cents per pound.
