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CME update: US cattle futures ease as grain costs rise

28 April 2021

US live cattle futures fell on 27 April, as higher input costs could lead to near-term selling of cattle as producers are resistant to paying higher feed costs.

Reuters reports that Chicago Mercantile Exchange June live cattle futures settled 0.425 cent lower at 115.850 cents per pound.

"You've got your cost of gains climbing and climbing," said Scott Varilek, broker at Kooima Kooima Varilek Trading Inc. "Could be some liquidation pressure on the front, without the incentive to keep feeding."

Consumer demand remains strong, with choice beef cut-outs climbing $5.79 per cwt. to $290.99 and select cuts gaining $5.18 to $279.53.

"The demand is there - it's red hot. There's a lot of money in the industry, but it's just not trickling down to the producer," Varilek said.

Feeder cattle futures were mixed, with CME August feeders losing 0.225 cent to close at 150.075 cents per pound, though nearby contracts added amid volatile trade for Chicago Board of Trade corn futures after climbing to a new eight-year high.

Read more about this story here.

Source: Reuters


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