Chicago | Reuters — Chicago Mercantile Exchange live cattle futures eased on Tuesday after two sessions higher, as traders watch to see the impact of sweltering temperatures on slaughter-ready cattle, analysts said.
“The heat does hurt the weights. That’s been an issue for a lot of the south, for a lot of the summer,” said Don Roose, president of U.S. Commodities.
Most-active October live cattle slid 1.25 cents, to 178.625 cents/lb. (all figures US$). September feeder cattle dipped 1.325 cents to close at 249 cents/lb.
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Beef packer margins declined versus Monday and a week ago, falling to $47.30 per head, according to Denver-based Hedgers Edge.
Boxed beef prices firmed, with choice cuts adding $1.49, to $317.05 per hundredweight (cwt), while select cuts gained $2.18, to $289.51/cwt, according to the U.S. Department of Agriculture.
Cattle slaughter fell to 124,000 head, down from 125,000 a week earlier and 127,00 the same period last year, USDA said.
CME lean hog futures eased for a second session, pressured by a seasonal increase in supplies, analysts said.
“Hog supplies are going to be larger, but we’re still in a liquidation in hogs, so we have pressure here to end the year,” said Roose.
The most-active October futures lost 1.05 cents, to 79.575 cents/lb.
Daily hog slaughter of 476,000 head was down from 482,000 the same period last year.
USDA quoted the wholesale pork carcass cutout at $103.65/cwt, down 1.56 cents from Monday.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
