Live cattle, lean hog futures turn higher - CME
Customer demand remains firm
17 July 2024
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle futures turned higher on Tuesday on technical trading and as wholesale prices indicated that consumers demand for select cuts remained firm, Reuters reported, citing traders.
Expectations of steady to lower cash prices for cattle this week, as well as limited trades, kept a cap on cattle futures on the day, analysts said.
Prices for the choice boxed beef cutout on Tuesday morning were down $1.00 at $320.49 per hundredweight (cwt), while select was up $0.60 at $305.42 per cwt, according to the US Department of Agriculture (USDA).
But by Tuesday afternoon, boxed beef cutout prices dropped sharply - which could weigh on cattle futures on Wednesday, analysts said.
Meatpackers slaughtered 121,000 head of cattle on Tuesday, up from 120,000 head a week earlier - and down from 127,242 head of cattle a year ago, according to USDA data.
Meanwhile, lean hog futures also firmed on the day, as market participants saw bargains in deferred contracts - which have been trading at a discount to the cash market, said Don Roose, president of US Commodities.
On Monday morning, wholesale pork prices strengthened. USDA reported pork cutout values firmed with carcasses priced at $100.77 per cwt, up $2.48, while bellies turned $1.85 higher at $125.53 per cwt.
CME August live cattle futures ended up 0.550 cent at 182.675 cents per pound, while most-active October live cattle futures settled up 0.725-cent at 184.525 cents per pound.
CME August feeders finished down 0.150-cent at 258.625 cents per pound.
CME August lean hog futures settled up 2.850 cents at 91.275 cents per pound - the highest price in nearly one month. October lean hog futures nUended up 2.425 cents at 72.200 cents per pound.
