1 hr ago
Cattle Futures Slip as Traders Assess Cash Prices, Demand
Cattle trading prices went down on Tuesday after rising strongly on Monday.
Traders wanted to see how much buyers would pay for cattle this week.
They were also watching whether consumers would keep buying beef at higher prices.
Cash cattle prices were near $226 per hundredweight last week.
Meatpackers were making more money from each animal they processed.
Prices for boxed beef also increased.
Feeder cattle and live cattle futures both declined.
Hog futures rose, and analysts expected the U.S. hog herd to be slightly smaller than last year.
Live cattle and feeder cattle futures fell on Tuesday after a sharp rally the previous day.
Traders were watching this week’s cash cattle prices and consumer demand for U.S. beef.
Cash cattle prices were near $226 per hundredweight last week, while meatpackers’ margins improved.
Choice boxed beef rose to $378.89 per hundredweight and select beef reached $357.85.
October and December lean hog futures gained, while analysts expected the U.S. hog herd to be smaller year over year.
- Who
- Cattle and hog futures traders, U.S. meatpackers, consumers, and analysts surveyed by Reuters.
- What
- Cattle futures declined as traders assessed cash cattle prices and beef demand; hog futures increased.
- Where
- The trading took place on the Chicago Mercantile Exchange, with U.S. cattle and beef markets involved.
- When
- Tuesday, September 22; a quarterly USDA Hogs and Pigs report was expected Thursday.
- Why
- Traders took profits after Monday’s rally and awaited clearer signals on cash prices and short-term beef demand.
Key facts
- October live cattle
- Closed down 2.175 cents at 218.775 cents per pound.
- December live cattle
- Closed down 2.550 cents at 219.450 cents per pound.
- October feeder cattle
- Closed down 2.225 cents at 328.025 cents per pound.
- Recent cash cattle price
- Approximately $226 per hundredweight last week.
- Choice boxed beef
- Rose $2.54 to $378.89 per hundredweight.
- Select boxed beef
- Rose $2.08 to $357.85 per hundredweight.
- Meatpacker margin
- Rose to $80.85 per slaughtered head from $30.50 on Monday.
Quotes
Matt Wiegand
Risk management consultant for FuturesOne
“Seeing some profit-taking and consolidation here is not too big of a surprise. We'll see where the dust settles on cash trade and where beef demand goes here short-term.”
livemint.com
Sources
Related news
Cattle Futures Fall as Screwworm Restrictions Lift and Tariffs Ease
Trump Expands Beef Import Quota to Ease Prices
Wheat falls as profit-taking offsets Black Sea war concerns
Chicago Wheat Falls as Turkey Revives Black Sea Grain Plan
Corn Hits Three-Year High as U.S. Crop Outlook Worsens
Copper Slips as Hot US Inflation Revives Fed Rate-Hike Bets
U.S. Targets Russian Oil Buyers Despite Its Own Dependence
Livestock Feed Makers Face Maize Competition From Ethanol Producers
Weak Monsoon and El Niño Threaten India’s Food Prices
