Feeder cattle market approach one-month low on rising corn prices - CME
December lean hog futures settle up
16 November 2022
2 minute read
By: Chicago Mercantile Exchange (CME) feeder cattle futures neared a one-month low on Tuesday as rising grain prices signalled risks for increased costs for livestock feed, Reuters reported, citing brokers.
Unconfirmed reports that Russian missiles crossed into NATO member Poland fueled gains in corn, wheat and soy futures as traders worried about escalating geopolitical tensions.
"Feeder cattle faded on the corn rally," a broker said.
CME January feeders sank 2.425 cents to settle at 177.025 cents per lb and touched its lowest price since October 17.
Live cattle futures, meanwhile, were mixed.
Most-active CME February live cattle futures settled up 0.500 cent at 153.050 cents per lb. The spot December contract slipped to end 0.300 cent lower at 151.275 cents per lb.
Wholesale beef prices were also mixed. Choice cuts edged up by 38 cents to $258.36 per hundredweight (cwt), while select cuts slid by $1.45 to $231.76 per hundredweight, according to US Department of Agriculture (USDA) data.
Traders are waiting for the USDA to issue a monthly Cattle on Feed report on Friday for an update on how many animals are in feedlots. Futures seem to be drifting in the meantime, a broker said.
"It still looks like a matter of marking time until you get closer to Cattle on Feed coming out," he said.
Hog futures closed higher, after rising on Monday partly because of hopes for more pork demand from China.
CME December lean hog futures settled up 0.450 cent at 85.325 cents per lb. February hogs were up 1.1 cent at 90.075 cents.
Meatpackers slaughtered an estimated 490,000 hogs and 129,000 cattle on Tuesday, up from 483,000 cattle and 123,000 hogs a week ago, the USDA said.
