Cattle, hog markets climb on strong US consumer demand - CME
US retail sales were up 0.4% last month
21 October 2024
2 minute read
By: Chicago Mercantile Exchange (CME) cattle and hog futures rallied on Friday as September retail sales data this week signalled healthy US consumer demand, Reuters reported, citing analysts.
US retail sales were up 0.4% last month, supporting the idea that the economy was maintaining strong growth in the third quarter and consumer demand for beef and pork would remain solid, the analysts said.
Receipts for food services and drinking establishments rose 1%, said Altin Kalo, chief economist at Steiner Consulting Group.
"The consumer continues to go out there and spend, and it's showing up in the wholesale prices as well," said Kalo.
Some wholesale meat buyers were previously uncertain as to how demand was going to play out, Kalo said. "Now they have to go out and find the product, and in some cases, the product is not there."
CME December lean hog futures LHZ24 rose 0.150 cent to finish at 77.825 cents per pound.
CME December live cattle ended up 1.150 cents at 187.325 cents per pound, while November feeder cattle futures settled up 1.850 cents at 247.600 cents per pound.
"Fundamentals on cattle are positive," said Don Roose, founder of brokerage US Commodities. "The cash (market) this week was higher, the boxed beef was higher, and the funds continue to buy the market."
The choice boxed beef cutout rose $1.39 to $320.65 per hundredweight, according to the US Department of Agriculture. Select boxed beef prices gained $0.68 to $294.20 per cwt.
Beef packers were estimated to be making $57.00 per head on Friday, down from $59.25 per head on Thursday but up from losses of $3.35 per head a week ago, according to livestock marketing advisory service HedgersEdge.
