Cattle futures gain on wholesale demand, cutout prices - CME
Lean hog futures ease
10 December 2024
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle futures rose on Monday, bolstered by a bump in wholesale cutout values and signs of ongoing consumer demand, Reuters reported, citing analysts.
Lean hog futures eased back from Friday's price bump on signs of profit-taking, traders said.
Cash cattle market prices were expected to remain relatively steady, as packers continued to seek supplies, market analysts said.
Meanwhile, last-minute buying by retailers, restaurant suppliers and other end-user customers helped drive up boxed beef prices at the start of the week, said Cassie Fish, analyst and author of The Beef blog.
The slaughter pace is expected to slow closer to the Christmas and New Year holidays, said Fish, when meat packers typically shut down for plant maintenance and supplies tend to tighten.
Cut-outs gained strength as well she said, with this likely the last week to get a rib in time for the New Year's Eve holiday.
Choice boxed beef gained $2.10 at $314.14 per hundredweight, according to the US Department of Agriculture on Monday afternoon, while select boxed beef rose $2.61 to $279.34 per (cwt).
Packers pared losses to an estimated $43.90 per head on Monday, compared with losses of $97.45 per head on Friday and losses of $50.20 a week ago, according to marketing advisory service HedgersEdge.
CME February live cattle settled 0.850 cent higher at 187.025 cents per pound, while January feeder cattle lost 0.025 cent to settle at 255.800 cents per pound.
CME lean hog futures ended lower, with February futures falling 0.825 cent at 86.500 cents per pound.
The CME lean hog index price was $83.73 for the two days ending Dec. 5, and $83.93 for the two days ending Dec. 4.
The pork carcass cutout rose $2.47 to $93.63 per cwt on Monday afternoon, the USDA said.
