2 September 2022

2 minute read

North America

Chicago Mercantile Exchange (CME) live cattle futures settled mostly higher on Thursday as lower grain prices propped up feeder cattle futures, signalling cheaper feed costs, Reuters reported, citing traders.

Benchmark CME October live cattle futures settled up 0.225 cent at 142.800 cents per lb, a day after dipping to a four-week low.

CME October feeder cattle rose 0.875 cent to end at 184.350 cents per lb, as corn futures closed lower for a third straight session.

But rallies in cattle were limited by softening beef prices and mounting worries about a global economic slowdown that could curb demand for meat.

In the US wholesale beef market, choice cuts fell 27 cents to $258.07 per hundredweight (cwt), the lowest since mid-May, according to US Department of Agriculture (USDA) data. Select cuts fell $1.15 to $236.59 per cwt.

Hog futures closed mixed, with the most-active CME October lean hogs rising 0.425 cent to 91.950 cents per lb while December hogs fell 0.100 cent to close at 83.775 cents per lb.

The CME Lean Hog Index, a two-day weighted average of cash hog prices, fell to $107.62 per cwt, down $1.74 from a day earlier and its lowest since 10 June.

Wholesale pork prices retreated, with the USDA reporting pork carcass value at $101.86 per cwt on Thursday afternoon, down $1.33 from Wednesday.

The USDA weekly export sales report, normally released on Thursdays, was delayed until at least 15 September due to problems with the launch of a new reporting system.

Source: Reuters