16 July 2024

2 minute read

By: Global Ag Media

North America

Chicago Mercantile Exchange (CME) feeder cattle futures ticked higher on Monday and live cattle futures ended mostly lower, as the market struggled to find clear direction, Reuters reported, citing traders.

Increased demand from meatpackers as well as lower feed prices have kept cash cattle prices higher than normal, analysts said. Wholesale beef prices, too, stayed higher much longer into the summer season - which traders have taken as a reflection of US consumer demand.

But that trend has shifted since the July 4th weekend.

Prices for the choice boxed beef cutout on Monday morning were down $0.65 at $321.41 per hundredweight (cwt), while select was up $1.01 at $303.32 per cwt, according to data from the US Department of Agriculture.

"It could be a signal that consumers still want to buy beef, but they're looking at cheaper options, such as ground beef," said Dan Norcini, an independent livestock trader.

CME August live cattle futures ended down 0.250 cent at 182.125 cents per pound. CME August feeders finished up 0.125-cent at 258.775 cents per pound.

Lean hog futures turned higher early in the session on Monday on short-covering and new buyers jumped into the market, Norcini said.

But lean hog futures ended the day lower on demand concerns.

On Monday morning, the USDA reported pork cutout values that were mixed. Carcasses were priced at $98.65 per cwt, down 19 cents, while bellies turned $2.13 higher at $122.41 per cwt.

China's pork output in the second quarter shrank from a year earlier, government data showed on Monday, falling on an annual basis for a second consecutive quarter as weak demand amid a slowing economy limited slaughter rates.

CME August lean hog futures settled down 0.025 cent at 88.425 cents per pound. October lean hog futures ended down 0.375 cent at 69.775 cents per pound.