Chicago | Reuters—Chicago Mercantile Exchange live and feeder cattle futures fell for a second consecutive day on Thursday, pressured by technical selling and profit taking following recent highs, and as wholesale beef prices fell, analysts said.
Cattle futures normally come under seasonal pressure in early December as packers need fewer animals for abbreviated holiday-week slaughter operations at the end of the month.
“Cattle drifted lower, which is normal for this time of year,” said Matthew Wiegand, a broker with FuturesOne.
“The trade got pretty overbought on the rally, especially on feeders, and we were unable to extend the rebound we saw on Tuesday. Broader profit taking picked up here lacking a compelling bull story,” he said.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
CME February live cattle LCG25 settled 2.000 cents lower at a 2-1/2 week low of 186.325 cents per pound after breaching technical chart support at its 20-, 50- and 100-day moving averages.
January feeder cattle FCF25 shed 2.025 cents to settle at 254.925 cents per pound, a 1-1/2 week low.
The choice boxed beef cutout fell 49 cents on Thursday afternoon to $307.84 per cwt, while select cuts dropped 60 cents to $277.10 per cwt, according to the U.S. Department of Agriculture (USDA).
Beef packer losses deepened to an estimated $88.60 per head on Thursday, according to marketing advisory service HedgersEdge, down from estimated losses of $69.95 per head on Wednesday and $27.00 at the end of last week.
CME lean hog futures ended flat to slightly firmer on Thursday, underpinned by strong pork export demand.
The USDA reported net U.S. pork export sales in the week ended Nov. 28 at 35,163 metric tons for shipment this year and 26,560 tons for next year. The combined sales were the largest for a single week in two years, USDA data showed.
CME February hogs LHG25 ended unchanged at 86.350 cents per pound while deferred-month contracts were moderately higher.
