February hog markets settle down - CME
Cattle futures bounce on tight supplies
4 December 2024
2 minute read
By: Chicago Mercantile Exchange (CME) live and feeder cattle futures rebounded on Tuesday from prior-session declines, continuing a recent climb sparked by tight cattle supplies and firm cash market prices, reported Reuters.
Recent strength in wholesale beef prices also encouraged continued buying despite a seasonal tendency for the market to decline after the Thanksgiving holiday into early December, pressured by expectations for slower beef demand in January.
"So far that bearish seasonal hasn't really played out just yet ... For now the market doesn't have evidence yet that this normal hit to demand is being seen," said Rich Nelson, chief strategist at Allendale Inc.
"You can also argue that the Trump tariff concerns with Mexico and Canada might keep a couple of cattle off of our borders," he said.
CME February live cattle gained 0.450 cent to 189.075 cents per pound. January feeder cattle added 2.450 cents to end at 259.300 cents per pound.
The choice boxed beef cutout scaled to a one-month high on Monday before slipping by $2.18 on Tuesday afternoon to $310.83 per cwt, according to the US Department of Agriculture. The select cutout also declined, shedding $1.67 to $275.33 per cwt.
Overshadowing the market, however, was news of layoffs at grains merchant and beef packer Cargill a day after news that Tyson Foods will close a meat processing plant in Kansas.
CME lean hog futures approached fresh contract highs on Tuesday, supported by concerns that tariffs on Canadian imports would curb hog supplies. But the market closed out the day in the red as buying interest faded.
February hogs settled down 0.100 cent at 87.850 cents per pound.
