3 November 2022

2 minute read

By: Global Ag Media

North America

Benchmark live cattle futures on the Chicago Mercantile Exchange (CME) drifted lower on Wednesday for a fifth straight session on long liquidation as traders awaited movement in the cash cattle market, Reuters reported, citing traders as its sources.

CME December live cattle settled down 0.550 cent at 151.400 cents per lb after touching 151.200 cents, the contract's lowest since October 21.

Wholesale prices for choice cuts of beef inched higher but stayed below Monday's two-month top. Choice cuts were priced at $263.47 per cwt on Wednesday afternoon, up $0.84 from Tuesday, US Department of Agriculture (USDA) data showed.

"The boxed beef feels like it's stalling out this week, not moving that great," said Don Roose, president of Iowa-based US Commodities.

Managed commodity funds sharply expanded their net long position in CME live cattle futures in the week to October 25, leaving the market prone to bouts of long liquidation in the absence of supportive news.

However, feeder cattle futures rose, settling 1% higher as corn and wheat futures tumbled, signalling cheaper feed costs.

Most-active CME January feeders finished up 1.800 cents at 180.000 cents per lb.

CME hog futures declined as traders focused on ample near-term hog supplies. The benchmark December contract settled down 1.900 cents at 83.300 cents per lb.

The USDA quoted the US pork carcass cutout value late Wednesday at $96.23 per cwt, down $0.98 from Tuesday.