Chicago | Reuters — CME Group cattle futures stabilized near recent highs on Thursday, with strong cash markets and a round of speculative buying underpinning prices.
Hog futures fell as the soybean futures market rallied to its highest in nearly 10 years, raising the prospect of higher feed costs.
The U.S. Agriculture Department said on Thursday morning export sales of beef totalled 18,100 tonnes in the week ended June 2, unchanged from a week earlier.
Pork export sales fell to 16,700 tonnes from 31,900 tonnes.
U.S. beef processors on Thursday slaughtered an estimated 126,000 cattle, the same as Wednesday’s total and up from 122,000 a year ago, USDA said. Hog slaughter was reported at 476,000 compared to 482,000 last year.
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CME June live cattle rose 0.225 cent to settle at 137.05 cents (all figures US$). The most-active August live cattle dropped 0.325 cent, to 137.2 cents, after peaking at its highest since April 27.
CME August feeder cattle gained 0.375 cent, to 176.025 cents/lb. On a continuous basis, front-month fed cattle hit its highest since Nov. 12, 2015.
Most-active July lean hog futures fell 2.95 cents, to 105 cents/lb.
Prices for choice cuts of boxed beef were reported at $271.10 per hundredweight on Thursday afternoon, down 64 cents from Wednesday afternoon while select cuts gained 20 cents, to $249.61/cwt.
Carcass values in the U.S. pork cutout rose by $4.62, to $109.09/cwt, while belly values jumped $17.55, to $155.18/cwt, USDA said.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.
