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CME update: cattle futures falter as grain prices skyrocket

01 October 2020

US live cattle futures slipped on 30 September and feeder prices dipped as prices for grain used as animal feed soared.

Reuters reports that the retreat in live cattle futures occurred after the December contract hit its highest price in more than a month.

The rally in US grain futures prices hung over the cattle markets because livestock producers will be more reluctant to pay high prices for feeder cattle if they are facing steeper feed costs, analysts said.

"Their willingness to pay went down," said Altin Kalo, agricultural economist for Steiner Consulting.

Most-active corn and wheat futures reached their highest prices since March at the Chicago Board of Trade after the US Department of Agriculture reported that grain stocks were lower than traders expected.

Chicago Mercantile Exchange October live cattle settled down 0.350 cent at 108.550 cents per pound.

Most-active December live cattle ended 0.775 cents lower at 112.350 cents after reaching its highest since 20 August.

CME November feeder cattle finished 1.725 cents weaker at 142.050 cents per pound.

Positioning on the last day of the month helped to sway prices, Kalo said.

Read more about this story here.

Source: Reuters


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