Chicago Mercantile Exchange (CME) live cattle futures closed mostly lower on Wednesday, following a brief surge that saw the benchmark December contract reach a near two-month high, as reported by Reuters.
The most-active December live cattle contract settled down 0.075 cents at 184.325 cents per pound, while the spot October contract dropped 0.150 cents to end at 183.050 cents. In contrast, feeder cattle futures saw a slight uptick, with the November contract finishing up 0.650 cents at 244.050 cents per pound.
The decline in wholesale beef prices contributed to the bearish trend. The U.S. Department of Agriculture (USDA) reported that choice cuts of boxed beef were priced at $298.17 per hundredweight (cwt) on Wednesday afternoon, marking a significant decrease of $3.72 from the previous day and the lowest price recorded since May 10. Select cuts also fell by $3.59, bringing the price to $283.28 per cwt.
In terms of cattle slaughter, the USDA indicated that 120,000 head were processed on Wednesday, with a total of 363,000 head slaughtered week-to-date—approximately 4% lower than the same period last year.
Market sentiment was further dampened by a decline in Wall Street equity markets, which raised concerns over consumer demand for higher-priced beef cuts. The Dow Jones Industrial Average and S&P 500 both retreated from record highs as investors awaited indications regarding future interest rate cuts.
In the hog market, futures experienced a modest decline due to profit-taking after the December contract reached its highest level since June 3. Traders adjusted their positions ahead of the upcoming quarterly USDA Hogs and Pigs report.
CME December lean hog futures settled down 0.075 cents at 74.900 cents per pound, with February hogs also declining by 0.075 cents to 78.625 cents.
The USDA reported pork carcass prices at $94.10 per cwt, down 14 cents from Tuesday.
As analysts prepare for Thursday’s quarterly hog report, expectations indicate that the U.S. hog herd as of September 1 may total 76.285 million head, reflecting a 0.2% increase from the previous year. However, the number of hogs designated for breeding is anticipated to decline by 2.1% year-on-year.
Meanwhile, agricultural organizations are urging the White House to take preemptive measures to prevent a potential strike scheduled for October 1 at U.S. East and Gulf Coast ports, which handle approximately half of the nation’s ocean trade, including essential consumer goods such as coffee, meat, and eggs.
