Lean hog futures hit contract high - CME
Cattle futures climb on strong beef demand
29 October 2024
2 minute read
By: Chicago Mercantile Exchange (CME) live and feeder cattle futures rose on Monday on fund buying and strong demand for beef, even as the red meat has become more expensive to consumers, Reuters reported, citing analysts.
Spot lean hog futures rallied to a contract high as pork values firmed and managed funds continued to build on their large net long position in the market.
December live cattle ended up 0.125 cent at 189.275 cents per pound, while November feeder cattle futures settled up 0.625 cent at 249.200 cents per pound.
CME December lean hog futures hit a contract high of 80.825 cents and ended up 0.950 cent at 80.625 cents per pound.
Beef demand keeps rising, even as prices do, said Dan Norcini, an independent trader.
"Everybody keeps thinking that beef has priced itself out. It's gotten too expensive," said Norcini.
The choice boxed beef cutout climbed $1.26 to $323.50 per hundredweight, the US Department of Agriculture (USDA) reported Monday afternoon. Select boxed beef prices however, fell $2.90 to $292.18 per cwt.
Larger-than-expected cattle supplies at US feedlots limited futures market gains on Monday following a monthly USDA Cattle on Feed report released late on Friday.
The report showed there was nearly the same number of cattle in US feedlots on Oct. 1 versus a year earlier. Market analysts had expected 0.3% fewer head of cattle, according to a Reuters poll.
Beef packers stayed in the black on Monday, estimated to be making $58.40 per head, up from $54.85 on Friday, though down from $61.15 a week ago, according to livestock marketing advisory service HedgersEdge.
