October lean hog futures finish up - CME
US cattle markets largely steady
26 August 2024
2 minute read
By: Chicago Mercantile Exchange (CME) cattle futures were mostly stable on Friday on pre-weekend positioning following a technical-driven selloff this week, Reuters reported, citing traders.
A weak cash cattle trade and uncertainty over the state of the US economy has added pressure on cattle futures, though beef buying ahead of the Labor Day holiday may be adding support to the market.
After the market's close, the US Department of Agriculture (USDA) reported that cattle placements into feedlots rose about 6% in July from a year earlier, beating analysts' expectations for a 3.2% increase, according to a Reuters poll.
Low prices for corn, which is fed to livestock, are helping feedlots make money selling cattle to processors, said Don Roose, president of US Commodities.
"Corn values have been coming down and the crush margin on cattle is good, so you can buy feeders," Roose said.
Most-active CME October feeder cattle finished 0.125 cent higher at 234.375 cents per pound. CME most-active October live cattle closed down 0.2 cent at 175.700 cents per pound.
Prices for choice cuts of boxed beef rose, while select cuts declined, according to USDA.
Meanwhile, hog futures have risen this week as higher prices for hogs from China, the world's top pork consumer, and a weaker dollar have made US pork exports more competitive.
CME October lean hog futures ended up 0.925 cent to 80.55 cents per pound.
Pork carcass cutout values also rose, according to USDA.
USDA said in a separate monthly report that US frozen pork supplies at the end of July were down 4% from a year ago. Frozen stocks of pork bellies were down 17% from a year earlier.
