2024-04-09 19:26:26
Chicago Mercantile Exchange (CME) livestock futures trended higher Tuesday as continued strength in wholesale prices eased concerns about consumer demand even as investors grew increasingly nervous in the face of inflationary concerns and rising consumer prices, according to traders.
Separately, lean hog futures continued to strengthen due to increased hog sales in China last month, indicating that the country’s hog stocks are showing signs of stabilization, reports said. traders.
The U.S. Department of Agriculture reported Tuesday morning that prices for boxed choice cuts of beef were $302.70 per hundredweight, up 63 cents from Monday, while select cuts were $301. $97 per hundredweight, up $1.70.
The cattle cash market is expected to be flat or slightly higher this week, given what’s happening with beef cutout values, traders said. But so far, cash traders have said sales have been limited, with a spot deal in Kansas reported at $182 per hundredweight and a load of cattle in Iowa trading at $186 per hundredweight.
Livestock futures traders also took interest in rising cattle slaughter weights, a sign that farmers may be slowing down the culling of their herds due to falling grain and livestock prices. improving pasture conditions, said Karl Setzer, partner at Consus Ag Consulting.
“Current slaughter weights are 26 pounds higher than last year, and we are seeing more steers slaughtered and fewer cows,” Mr. Setzer said. “To me, this is a sign that the contraction in the U.S. herd is over for now.
CME June live cattle rose 1.525 cents to 174.850 cents per pound. The most active May feeder cattle futures settled 2.275 cents higher at 239.450 cents per pound.
Actively traded June hogs hit a high of 109.175 cents per pound and settled 0.650 cents higher at 108.575 cents per pound. Contracts from May 2024 to October 2024 also hit record highs on Tuesday. (Reporting by PJ Huffstutter; Editing by Krishna Chandra Eluri)
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