9 months ago
CME Cattle Futures Drop Amid Profit-Taking
CME cattle futures went down on Friday.
This happened because people were taking profits, worrying about inflation, and seeing mixed prices for beef.
JBS, a big meat company, said it will close a plant in California, which will cost 374 jobs.
Beef prices are very high this year because there aren't enough cattle due to drought and other problems.
The U.S. Department of Agriculture said beef prices were a bit lower on Friday.
Meat packers are also losing money on each cow they process.
CME cattle futures fell on Friday due to profit-taking, inflation concerns, and mixed wholesale prices.
Feeder cattle futures also declined after cattle futures reached high levels on Thursday.
JBS announced the permanent closure of its Swift Beef Company facility in Riverside, California, eliminating 374 jobs.
Beef prices hit record highs this year due to reduced cattle supplies caused by drought and import restrictions.
Meat packers' profit margins continued to drop, with losses of $78.20 per head of cattle.
- Who
- Chicago Mercantile Exchange (CME), JBS, U.S. Department of Agriculture
- What
- CME cattle futures turned lower due to profit-taking, inflation concerns, and mixed wholesale prices
- Where
- Chicago, Illinois, USA
- When
- Friday, December 12
- Why
- Profit-taking, inflation concerns, mixed wholesale prices, and JBS's announcement to close a facility
Key facts
- Market
- Chicago Mercantile Exchange (CME)
- Futures Affected
- Live cattle, feeder cattle
- Closure Announcement
- JBS to close Riverside, California facility
- Jobs Lost
- 374
- Beef Prices
- $357.26 per cwt (choice), $344.78 per cwt (select)
- Packers' Loss
- $78.20 per head of cattle
- CME February Live Cattle
- 229.550 cents per pound
- CME January Feeder Cattle
- 339.100 cents per pound
Sources
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