Lean hog futures higher on technical trade - CME
Cattle futures end mixed
1 August 2024
2 minute read
By: Chicago Mercantile Exchange (CME) lean hog futures firmed on technical trading and weaker wholesale prices on Wednesday, while live cattle futures ended lower on a day of choppy trade, Reuters reported, citing market analysts.
Feeder cattle futures turned higher on support from falling corn futures. Ten of Chicago Board of Trade's corn futures contracts dropped to new contract lows on the day, with the most-active corn contract ending the day below $4 a bushel.
Cash cattle market prices have been relatively steady this week, traders said, as feedlots and other cattle sellers begin moving their market-ready cattle as temperatures turn hot.
Wholesale beef prices ticked higher by Wednesday morning, with the US Department of Agriculture reporting choice boxed beef cutout prices up 95 cents to $315.43 per hundredweight (cwt) and select cutout prices up 60 cents to $301.98 per cwt.
"There's a lot of trade talk of the packers trying to push boxed beef prices up to improve their margins," said Don Roose, president of US Commodities LLC. "Whether that's happening, we're not sure. But at a certain point, those wholesale prices can only go so high before you see push-back from consumers."
Beef packers have been seeing negative margins for weeks, losing $64.53 a head on Tuesday, according to data from risk management and market research firm HedgersEdge.com LLC.
But on Wednesday, packer margins jumped back into the black to $64.53 per head, HedgersEdge.com data showed.
CME August live cattle futures ended Wednesday down 0.575 cent at 187.125 cents per pound, while most-active October live cattle futures settled down 0.775 cent at 186.675 cents per pound.
CME August feeders ended 0.275 cent higher at 257.250 cents per pound, while most-active September feeders closed up 0.150 cent at 257.100 cents per pound.
CME August lean hog futures ended 1.075 cents higher at 92.275 cents per pound. October lean hog futures ended up 1.150 cent at 75.925 cents per pound.
