Cattle dip on weak cash market, rising corn prices
October lean hog futures settled down
5 September 2024
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures fell on Wednesday following recent weakness in cash prices and as corn prices sustained a small rally, Reuters reported, citing traders.
Traders also monitored US beef demand. Demand for beef typically weakens after Labor Day, which is considered the last major grilling holiday of the summer, until retailers begin stocking up on meat ahead of the holiday season.
Most-active CME October live cattle closed down 0.05 cent at 179.225 cents per pound. Most-active CME October feeder cattle finished down 1.875 cents at 237.45 cents per pound.
Cash cattle markets have remained quiet so far this week, according to the US Department of Agriculture. Cash prices fell by $1 to $3 per cwt in northern areas last week, brokers said.
Rising corn prices make it more expensive to feed the animals.
A cooling job market has added to concerns over consumer demand for beef, but could boost hog futures if consumers begin opting for cheaper pork instead of beef, traders said.
The Federal Reserve reported on Wednesday that US job openings dropped to a 3-1/2-year low in July, suggesting the labor market was losing steam.
"No doubt if the economy cools off, demand for beef will cool off," Doug Houghton, analyst at the Brock Report, said.
Select boxed beef prices fell on Wednesday afternoon, with prices down $0.72 at $299.39 per hundredweight (cwt), USDA data showed. But choice boxed beef cutouts were higher, up $0.93 at $311.60 per cwt.
Pork carcass cutout prices fell by $3.53 at $95.29 per cwt, according to USDA data.
Hog futures dipped on falling pork cutout values and expectations for a seasonal increase in pork production.
Most-active CME October lean hog futures settled down 0.95 cent at 81.575 cents per pound.
