US cattle markets lower on technical trading, JBS-China export news - CME
Lean hog markets continue lower
30 May 2024
2 minute read
By: Chicago Mercantile Exchange (CME) cattle futures turned lower on Wednesday amid news that China has blocked US beef exports coming from a JBS-owned plant in Colorado because traces of the feed additive ractopamine were identified in beef destined for China, reported Reuters.
The restrictions sent CME cattle futures slumping on Wednesday, analysts said, with the most-active August live cattle contract at one point posting its biggest percentage drop since May 1.
Meanwhile, feeder cattle futures also were weighed down by a flurry of technical trading, as buyers began to shed some of their positions after the recent price rally, analysts said.
CME August feeder cattle settled down 4.350 cents at 260.250 cents per pound.
And lean hog futures continued lower on demand concerns and continued weakness in the cash market, analysts said. Most-active CME July hog futures ticked down 0.200 cent to end the day at 96.325 cents per pound.
Brazil-based JBS, the world's largest beef producer, said in a statement to Reuters on Wednesday it is working with US and Chinese authorities to resolve the situation connected to the company's plant in Greeley, Colorado.
No other JBS beef facilities in the US have been impacted, the company said.
The suspension was effective Monday, according to a notice posted on the U.S. Department of Agriculture's Food Safety and Inspection Service website.
China also blocked meat and poultry products exported to the country from the cold-storage facility Cool Port Oakland in Oakland, California, effective the same date, according to the USDA site. Company officials did not return requests for comment.
CME August live cattle closed 1.625 cents lower at 180.200 cents per pound, while June live cattle settled down 1.200 cents at 183.350 cents per pound.
