Livestock futures turn higher on technical trading - CME
Futures prices continue to hover well below cash market levels
23 July 2024
2 minute read
By: Chicago Mercantile Exchange (CME) cattle futures ended higher on Monday on technical trading, and as futures prices continued to hover well below the cash market levels, Reuters reported, citing analysts.
Meanwhile, lean hog futures turned higher on technical buying and short-covering, a market analyst said.
Cash cattle trades were slow at the start of what is expected to be a relatively steady week price-wise, said traders.
Beef packers, whose margins are in the red, seem less inclined to pay up for cattle right now, as boxed beef cutout prices are showing signs of softening, said Don Roose, president of US Commodities.
After the market closed Friday, USDA reported 11.3 million head of cattle in feed lots on July 1, 101% of the total a year earlier and a number that was generally within trade expectations.
But USDA also reported far fewer cattle had been placed into feedlots in June than analysts expected, indicating fewer animals could be ready for slaughter later this year.
Lower cattle numbers are one reason for the lighter placements, but improved pasture conditions are also a leading cause, said Karl Setzer, partner at Consus Ag.
"Feeders are holding cattle on pasture longer than normal and cutting into feed grain demand as well," Setzer said.
The US Department of Agriculture (USDA) reported that 115,000 head of cattle were slated to be slaughtered Monday, down from 118,000 head a week ago and down from 122,865 head a year earlier.
CME August live cattle futures ended up 0.825-cent at 183.925 cents per pound, while most-active October live cattle futures rose 1.125 cents at 184.600 cents per pound.
CME August feeders ended 0.800-cent higher at 256.400 cents per pound.
CME August lean hog futures settled up 0.800-cent at 92.375 cents per pound. October lean hog futures ended up 1.425 cents at 75.975 cents per pound.
