Feeder cattle ease on strong corn prices - CME
Lean hog futures climb 2.5 cents
17 October 2024
1 minute read
By: Chicago Mercantile Exchange (CME) feeder cattle futures dropped on Wednesday, while live cattle rose in a turnaround from losses during the previous session, Reuters reported, citing analysts.
CME November feeder cattle ended down 0.975 cent at 245.500 cents per pound as rising corn prices signalled higher costs for livestock feed.
Corn futures advanced at the Chicago Board of Trade following a large US grain sale to Mexico.
CME December live cattle futures settled up 0.075 cent at 186.600 cents per pound.
Live cattle futures bounced back somewhat from a fall on Tuesday, as boxed beef values added support, said Austin Schroeder, a commodity analyst with Brugler Marketing.
The choice boxed beef cutout rose $2.30 to $319.13 per hundredweight, according to the US Department of Agriculture. Select boxed beef prices gained $0.28 to $297.37 per cwt.
Higher beef prices helped to boost margins for beef packers, which were estimated to be making $39.60 per head on Wednesday. That was up from $17.90 per head on Tuesday and losses of $29.20 per head a week ago, according to livestock marketing advisory service HedgersEdge.
In the pork market, CME December lean hog futures rose 2.5 cents to finish at 77.700 cents per pound.
"The funds have been building a fairly lofty net long position in the hogs, so they may be defending some of that position," said Schroeder.
