Cattle futures lower on dip in consumer demand - CME
October lean hog futures settle down
10 July 2024
1 minute read
By: CME live and feeder cattle futures turned lower on Tuesday as cutout values fell and consumer demand waned following the end of major steak-eating holidays, Reuters reported, citing traders.
Wholesale boxed beef prices turned lower. The choice boxed beef cutout price was down $4.87 at $325.60 per hundredweight (cwt) on Tuesday, while select was down $1.69 at $303.03 per cwt, according to data from the US Department of Agriculture (USDA).
"In the second half of the summer, warm temperatures usually turn off demand for beef," Rich Nelson, strategist at Allendale, said.
Commodity fund selling and a strengthening US dollar that makes US exports less competitive has also exerted pressure on cattle futures, traders said.
A cooling job market and continued high interest rates may stress US consumers and lead to decreased beef consumption.
"Steaks are the first thing to get cut from diets," Karl Setzer, partner at Consus Ag, said.
The CME August live cattle contract settled down 2 cents at 182.35 cents per pound. CME August feeders finished down 3.45 cents at 255.725 cents per pound.
CME August lean hog futures settled down 1.125 cent at 88.4 cents per pound. October lean hog futures, which set a new contract low for the second day in a row, ended down 1.75 cents at 70.775 cents per pound on falling cut-out carcass values.
