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CME update: live cattle futures rise 2 percent on feedlot data and beef prices

24 November 2020

US cattle futures closed higher on 23 November, bolstered by a supportive monthly cattle-on-feed report issued on 20 November.

Reuters reports that rising wholesale beef prices and strength on Wall Street stemming from a COVID-19 vaccine lent additional support.

"All of the above (suggest) optimism for the meat market," said Jason Roose, analyst and broker with Iowa-based US Commodities.

 

Chicago Mercantile Exchange February live cattle futures settled up 2.250 cents, about 2 percent, at 112.900 cents per pound.

The February contract gapped higher at open on 23 November after the US Department of Agriculture late Friday reported smaller numbers of US cattle on feed as of 1 November, and fewer cattle placed in feedlots during October, than analysts had expected on average.

"The last couple cattle-on-feed reports showed big placements, but this one had less," Roose said.

Wholesale beef prices continue to rise. Choice cuts were up $3.25 on Monday afternoon at $241.60 per cwt, the highest since June. Select cuts were up $2.50 at $217.48, according to USDA data.

CME January feeder cattle settled up 3.225 cents at 137.825 cents per pound.

Total pounds of beef in freezers totalled 500.473 million pounds, up 8 percent from the previous month and up 7 percent from last year, the USDA said.

Read more about this story here.

Source: Reuters



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