Chicago Mercantile Exchange (CME) cattle futures remained largely stable on Friday, with market activity influenced by pre-weekend positioning following a week marked by technical selloffs, according to Reuters.
Cattle Market Update
Cattle futures faced pressure this week from a weak cash cattle trade and economic uncertainties, though the upcoming Labor Day holiday has spurred some beef buying, providing support to the market. The U.S. Department of Agriculture (USDA) reported a 6% increase in cattle placements into feedlots for July compared to the previous year, surpassing analysts’ expectations of a 3.2% rise.
Low corn prices, a key feed for livestock, are contributing to favorable conditions for feedlots, making it profitable to sell cattle to processors. Don Roose, president of US Commodities, highlighted that falling corn values and favorable crush margins are benefiting cattle producers.
On the CME, October feeder cattle futures closed 0.125 cent higher at 234.375 cents per pound, while October live cattle futures ended 0.2 cent lower at 175.700 cents per pound. USDA data indicated that prices for choice cuts of boxed beef increased, whereas select cuts experienced a decline.
Hog Futures and Pork Market Dynamics
In contrast, hog futures saw an uptick this week, driven by rising hog prices in China, the world’s largest pork consumer, and a weaker U.S. dollar that has made U.S. pork exports more competitive. CME October lean hog futures finished up 0.925 cent, closing at 80.55 cents per pound.
Pork carcass cutout values also experienced an increase, according to USDA. Additionally, USDA’s monthly report revealed that U.S. frozen pork supplies at the end of July were down 4% from the previous year, with frozen stocks of pork bellies falling by 17%.
