Cattle futures firm on technical buying - CME
Lean hog contracts touch three-week low
19 November 2024
2 minute read
By: Chicago Mercantile Exchange (CME) cattle and lean hog futures gained ground on Monday on technical buying, analysts said, after losses the previous week driven by lower meat prices, reported Reuters.
Monday's bounce followed the actively traded December live cattle contract hitting a near-two-month low on Friday and the December lean hog contract touching a three-week low.
"We started the week with a little more optimism," said Altin Kalo, chief economist at Steiner Consulting Group, citing a shift from last week's heavy selling pressure.
Uncertainty about beef demand going into the year-end holidays has kept traders on edge, Kalo said.
In November, retailers begin focusing more on cuts like rib roasts and tenderloins, while cuts like rounds and chucks begin losing ground.
Wholesale meat prices were under pressure last week. Choice beef hit a six-week low while select cuts dropped to a 10-month low. The pork carcass cutout touched a seven-week low last Thursday.
This week, Kalo said, beef and pork values on Monday were better than the market expected, supporting both cattle and hog futures.
CME December lean hog futures finished up 0.525 cent at 80.025 cents per pound.
CME December live cattle futures settled up 1.150 cents at 184.100 cents per pound, while most-active January feeder cattle futures rose 2.275 cents to close at 249.500 cents per pound.
Beef packer margins were still in the red, with losses estimated at $70.80 per head on Monday, compared to losses of $72.90 per head on Friday and losses of $45.85 per head last week, according to livestock marketing advisory service HedgersEdge.
