10 June 2024

2 minute read

By: Global Ag Media

North America

Chicago Mercantile Exchange (CME) live cattle futures ended mixed on Friday as wholesale beef price firmed and packer margins improved, but traders remain concerned that cash market values may be near a seasonal peak, Reuters reported, citing analysts.

The spread of bird flu in dairy cattle herds spooked the market this week as traders assessed the possible impact on consumer demand for beef of whether herd liquidation would swell near-term beef supplies.

Cash cattle prices have eased over recent weeks, and slow beef export demand and increasing cattle weights have weighed on the market, traders said.

"The cash cattle market posted record a couple weeks ago and has pulled back a little bit," Lane Akre, economist at ProFarmer, said. "The trade is expecting the pullback to continue."

CME August live cattle closed down 0.300 cent at 177.175 cents per pound. Other contracts finished down 0.050 to up 0.575 cent.

August feeder cattle settled up 2.075 cents at 254.925 cents per pound as corn futures tumbled.

Boxed beef values for select and choice cuts both increased on Friday, according to US Department of Agriculture data. The choice cutout reached a 9-1/2 month high earlier this week while the select cutout hit a 11-1/2 month peak.

CME lean hog futures ended mostly higher after some contracts hit 4-1/2 month lows in the previous session, lifted by good pork export demand, notably to No. 1 buyer Mexico.

"Export demand has been strong, and the hog market is finding some strength in here," Roose said. "The cash market has been disappointing, which has kept the market stalled."

CME July hog futures ended up 0.525 cent at 93.500 cents per pound.