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CME Cattle Futures Fall as Beef Prices Weaken
Cattle futures are prices for cattle that people agree to buy or sell later.
On Thursday, those prices went down for the second day in a row.
Some traders sold after prices had risen earlier in the week, and wholesale beef prices also weakened.
Cattle sales at feedlots were slow, and some buyers offered less money.
Still, demand for beef was described as generally strong.
Hog futures also fell because cash hog and pork prices were weak.
Some hog contracts reached their lowest prices ever.
CME cattle futures fell for a second straight session on Thursday after early-week gains.
December live cattle settled down 0.225 cent at 223.550 cents per pound; November feeder cattle fell 0.925 cent to 334.875 cents.
Lower wholesale beef prices and profit-taking weighed on futures, while slow feedlot trade and limited packer bids pointed to possible lower cash prices.
USDA choice boxed beef fell 75 cents to $374.87 per hundredweight, while select beef declined $2.12 to $352.09.
Lean hog futures also fell amid weak cash hog and pork prices; several contracts reached life-of-contract lows.
- Who
- CME cattle and lean hog futures traders; the USDA reported beef prices.
- What
- Cattle futures fell for a second session, and lean hog futures also declined.
- Where
- Chicago Mercantile Exchange markets; cattle cash-market activity was reported at Plains feedlots.
- When
- Thursday, Oct. 8.
- Why
- Profit-taking and technical selling followed early-week gains, while lower wholesale beef prices and weak cash-market signals weighed on prices.
Factors Pressuring Prices
Factors Supporting Cattle
Near-term market signals
Factors Pressuring Prices
Lower wholesale beef prices, slow cash-market trade, and limited packer bids contributed to selling and concern that the next sales could be at lower prices.
Factors Supporting Cattle
Cattle markets remained underpinned by generally strong consumer demand for beef.
Cattle supply
Factors Pressuring Prices
An increase in imported cattle supplies from Mexico in recent weeks weighed on feeder cattle.
Factors Supporting Cattle
The article did not cite a specific supply-related factor supporting prices.
Key facts
- December live cattle settlement
- 223.550 cents per pound, down 0.225 cent
- November feeder cattle settlement
- 334.875 cents per pound, down 0.925 cent
- Choice boxed beef
- $374.87 per hundredweight at midday, down 75 cents from Wednesday
- Select boxed beef
- $352.09 per hundredweight, down $2.12
- Packer margins
- $83.75 per head, compared with $126.45 a week earlier
- December hog settlement
- 68.600 cents per pound, down 0.500 cent
- Market factors
- Slow feedlot trade, limited packer bids in some areas, and increased imported cattle supplies from Mexico weighed on parts of the cattle market.
Quotes
Doug Houghton
Analyst with Brock Capital Management
“In the absence of positive news out of the cash market, I think that there's just some profit-taking going on. Beef prices have started to weaken again after showing strength last week, and we had that big run-up in cattle prices on Tuesday.”
livemint.com
Sources
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