13 November 2024

2 minute read

By: Global Ag Media

North America

Chicago Mercantile Exchange (CME) live cattle futures gained strength on Tuesday on technical trading, analysts said, while lean hog futures rose for a second day as traders anticipated growing export demand, reported Reuters.

CME December live cattle futures rose 0.70 cent to 184.400 cents per pound. Most-active January feeder cattle futures rose 1.325 cents to 243.575 cents per pound.

"Live cattle futures are oversold and the technical indicators are starting to turn up," said Cassie Fish, analyst and author at The Beef.

"We're kind of finding support in the 100-day moving average area because there's really no improvement fundamentally."

She noted that prices for select cuts of beef shipped to wholesale buyers in large boxes had fallen - $1.92 to $279.92 per hundredweight, according to the US Department of Agriculture (USDA), adding that the grinding complex for lean beef is softening.

"The only really bright spot for the beef cutout is the choice product heading into the holidays," said Fish.

The USDA reported choice boxed beef rising $0.06 to $308.27 per cwt.

Packers lost an estimated $49.95 per head of cattle on Tuesday, down from losses of $45.85 on Monday and earnings of $7.25 per head last week, according to livestock marketing advisory service HedgersEdge.

Fish said the cash trade was steady at best this week.

"The futures broke faster and ahead of the physical side and so now the physical side is weaker than the futures side," she said.

CME December hog futures closed higher for a second day after making gains on Monday as China announced it was launching a debt package aimed at stabilising its economy, giving traders hope the move could lead to higher consumer demand from the leading pork importer, according to market analysts.

CME December hog futures finished up 0.575 cent at 82.350 cents per pound.