US feeder cattle up on signs of bargain buying - CME
October lean hog futures end down
22 August 2024
2 minute read
By: Chicago Mercantile Exchange (CME) feeder cattle ticked up on Wednesday on a rebound in bargain buying following a steep dive in the previous session, reported Reuters.
Meanwhile, US stocks inched higher and corn futures continued to linger near four-year lows, adding support to the market, traders said.
The S&P 500 and the Nasdaq notched gains as the most recent meeting of the Federal Reserve cemented expectations for a September rate cut.
The previous day's tumble was driven largely by technical selling.
"Feeders got oversold and corn is not showing a lot of movement so it allowed for a bit of a rebound today," Matthew Wiegand, broker at FuturesOne, said. "There's not a lot of urge to push it lower."
Most-active October feeder cattle finished 0.35 cents higher at 231.675 cents per pound after setting a new low at 299.35 cents per pound. Five other contracts also set lifetime lows.
Meanwhile, CME most-active October live cattle closed down 0.975 cents at 174.625 cents per pound, while six back-month contracts set lifetime lows.
Fund selling and a weak cash market may be pressuring live cattle futures, Dan Basse, president of AgResource, said.
Industry players remain concerned over demand as consumers grapple with inflated food costs, while uncertainty over the outcome of the U.S. presidential election in November may add volatility into the market.
Boxed beef and pork cutout values largely increased as of Wednesday afternoon, according to US Department of Agriculture data.
CME October lean hog futures ended down 0.25 cents at 76.15 cents per pound.
