Chicago | Reuters — Chicago Mercantile Exchange cattle futures climbed on Tuesday as investors looked for safety amid weaker broader markets.
“With oil prices giving up gains the last couple days, the reverse happened in cattle,” said Altin Kalo, Economist at Steiner Consulting Group.
CME’s most-active June live cattle added 1.1 cents to 136.8 cents/lb., while April feeder cattle firmed 0.2 cents to 162.6 cents (all figures US$).
Oil prices fell more than six per cent on Tuesday, reaching their lowest in almost three weeks as surging COVID-19 cases in China spurred demand concerns.
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Funds have begun reinvesting in the cattle markets after selling off last week on fears that inflation and higher fuel and feed prices could dampen consumer demand, Kalo said.
U.S. boxed beef prices were mixed, with choice cuts gaining $2.39, to $257.90/cwt, USDA said, while select cuts eased $1.10, to $248.84/cwt.
Cattle slaughter maintained recent processing pace, with 125,000 head slaughtered.
Gains in nearby hog futures were muted, though summer-month contracts saw stronger gains on the hope of strong demand.
“The expectation is still for tight supplies in the summer, and good demand helping prop up the market,” said Kalo.
CME April lean hog futures added 0.2 cents to end at 102.4 cents/lb. June hogs firmed 0.725 cents to finish at 120.075 cents/lb.
The CME’s lean hog index, a two-day weighted average of cash hog prices, climbed 1.05 cents, to 120.4 cents/lb.
— Reporting for Reuters by Christopher Walljasper in Chicago.
