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Live cattle, feeder cattle top three-week highs - CME

06 June 2022

Lean hog futures drop

Chicago Mercantile Exchange (CME) live cattle futures topped a three-week high in the most-active contract on Friday before ending lower amid pre-weekend profit-taking, reported Reuters, citing analysts.

Feeder cattle futures also exceeded a three-week high, while lean hog futures came under pressure at the CME.

Strong demand for cattle from meatpackers and a decline in the US herd size have helped support live cattle futures, analysts said. Cattle inventories are tightening amid drought in the United States and high costs for livestock feed.

World food prices dipped in May for a second consecutive month after hitting a record high in March, although the cost of cereals rose and the meat index hit an all-time high, the United Nations' food agency said.

US beef processors on Friday slaughtered an estimated 126,000 cattle, up from 120,000 cattle a week earlier and 120,000 a year ago, the US Department of Agriculture (USDA) said.

CME June live cattle touched 133.925 cents per pound, its highest since 17 May, before backpedaling to end 0.025 cent lower at 133.600 cents.

The most-active August live cattle contract touched its highest since 12 May at 134.575 cents before closing down 0.275 cent at 133.850 cents.

Deferred live cattle futures settled firmer, along with feeder cattle futures. A setback in grain futures at the Chicago Board of Trade helped support gains in feeder cattle, a broker said.

CME August feeder cattle ended up 0.925 cent at 173.875 cents per pound and reached its highest price since May 10.

In the pork market, most-active July lean hog futures dropped 1.425 cents to close at 110.750 cents per pound.

Carcass values in the US pork cutout fell by $2.64 to $109.38 per 100 pounds, while belly values tumbled $16.66 to $160.53 per 100 pounds, the USDA said.

Source: Reuters



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