22 October 2024

2 minute read

By: Global Ag Media

North America

Chicago Mercantile Exchange (CME) cattle futures pulled back from the previous week's rally on Monday as traders positioned ahead of Friday's US Department of Agriculture Cattle on Feed report, Reuters reported, citing analysts.

Meanwhile, boxed beef prices remained strong amid enduring consumer demand, solid economic outlook and the beginnings of wholesaler buying ahead of Thanksgiving and Christmas.

"Don't make too much out of this. We had a nice rally for a bit, and the market has settled down," Altin Kalo, economist at Steiner Group, said.

"Nobody knows what the cash trade is going to look like for the week, and they're pulling back until we get direction for where the trade is going to develop," he said.

Tight herd supplies and steady to higher prices in the cash markets have also continued to support futures, analysts said.

Strength in wholesale prices gave futures a boost, too. The choice boxed beef cutout rose $2.21 to $322.86 per hundredweight, according to the US Department of Agriculture on Monday afternoon. Select boxed beef prices gained $2.01 to $296.21 per cwt.

CME December live cattle ended down 0.50 cent at 186.825 cents per pound, while November feeder cattle futures settled down 1 cent at 246.60 cents per pound.

Hog futures rose on strength from wholesale pork prices and an uptick in buying from end users, analysts said. Pork cutout values increased across the board following a weeks-long pattern of firming wholesale prices.

CME December lean hog futures rose 0.45 cent to finish at 78.275 cents per pound.

Traders said they also remain positioned ahead of November's presidential election and Federal Reserve meeting.