US live cattle futures rebound - CME
October hog futures end down
20 August 2024
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle futures bounced back on Monday after a slow previous week, while feeder cattle futures dipped on corn's Chicago Board of Trade (CBOT)climb, reported Reuters.
CME most-active October live cattle closed up 0.725 cents at 179.025 cents per pound. Most-active October feeder cattle finished 0.075 cents lower at 235.875 cents per pound.
Live cattle got a boost from short covering on Monday after sagging the prior Thursday and Friday, said independent livestock trader Dan Norcini. The bounce today was primarily a correction from live cattle's oversold condition on Thursday and Friday, said analysts.
Meanwhile feeder cattle took a hit from a rally in corn on Monday as the grain experienced its own rebound from multiyear lows the previous week.
Higher grain prices raise feeding costs for animals.
Traders also monitored the impact of a dry weather spell on corn and reports from the Pro Farmer crop tour, which began its journey across the Midwest on Monday.
CBOT September corn settled up 7-1/2 cents at $3.78 a bushel, while most-active December corn ended up 7-3/4 cents at $4.00-1/4 a bushel.
The approach of Labor Day on September 2, the last major grilling holiday of the season, also weighed on the market, said analysts.
Norcini said many market participants are nervous about aggressively buying cattle at the moment, and will be monitoring Labor Day buying this week.
"People are thinking the demand for beef is simply not going to hold up in the economy," Norcini said.
CME October lean hog futures ended down 1.725 cents at 76.800 cents per pound.
