US cattle futures finish higher, USDA data seen as neutral - CME
October lean hog futures end down
23 September 2024
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures ended higher on Friday as traders awaited the release of a US Department of Agriculture Cattle on Feed report, reported Reuters.
October live cattle settled up 2.500 cents at 182.475 cents per pound, reaching highs not seen since Aug. 2.
October feeder cattle futures ended up 0.125 cent at 243.900 cents per pound.
The USDA's monthly report, issued after trading ended, showed cattle and calves on feed for the slaughter market in the United States totaling 11.2 million head on Sept. 1, slightly above a year earlier and close to trade expectations for a 0.9% increase.
Placements of cattle in feedlots during August totaled 1.98 million head, 1% below 2023 and in line with analysts' expectations. Marketings of fed cattle during August totaled 1.82 million head, about 4% below 2023 and near expectations for a 3.4% decline.
"It was pretty much what people had dialled in," said Cassie Fish, analyst and author of The Beef blog.
The US cattle herd this year dropped to its lowest level in decades. However, Fish noted there continue to be more cattle on feed than a year ago, which she tied to the low price of corn used for feed.
"They're feeding cattle a lot more days on feed," said Fish. She said the actual slaughter weight for steers released by the USDA on Thursday was 941 pounds, a new high for 2024.
Meanwhile, choice boxed beef prices rose by 63 cents to $300.19 per hundredweight and select cuts of boxed beef rose by 33 cents to $288.59 per hundredweight, according to USDA data on Friday.
CME October lean hog futures ended down 0.025 cent at 82.225 cents per pound.
