Chicago Mercantile Exchange (CME) live cattle futures concluded with a mixed performance on Friday, reflecting a growing sense of uncertainty regarding packer interest following the US Memorial Day holiday weekend, as reported by Reuters, citing traders.
Feeder cattle futures trended lower as traders adjusted their positions ahead of the holiday weekend and in anticipation of a monthly US government report. Analysts anticipate this report to reveal a decrease in placements of cattle into feedlots during April compared to the previous year.
Lean hog futures closed with a mixed pattern, with nearby contract prices lingering at lows not witnessed since February, due to ongoing weakness in the cash market.
According to independent trader Dan Norcini, live cattle futures initially traded higher during the day but relinquished some of their gains on concerns regarding heavy weights on feedlot cattle, which could potentially impact cash cattle prices post-holiday.
Earlier in the week, strength in the cash cattle market had bolstered cattle futures, with cash prices surpassing futures prices. Cash cattle transactions on Thursday recorded prices of $192 per hundredweight (cwt) in Nebraska and $187 per cwt in Kansas, as confirmed by two traders.
In other news, the US Department of Agriculture (USDA) reported on Friday that bird flu virus particles were detected in tissue samples taken from one dairy cow dispatched for slaughter at a US meat processing plant. USDA stated that meat from this animal, along with others that were tested, was prevented from entering the nation’s food supply.
The most-active CME August live cattle closed 0.050 cent higher at 181.125 cents per pound, while August feeder cattle settled down 1.225 cents at 261.225 cents per pound.
Conversely, the most-active CME July hog futures concluded down 0.250 cent at 94.225 cents per pound.
