Chicago | Reuters — Chicago Mercantile Exchange live cattle futures eased on Friday as brokers said steady-to-lower cash prices were seen as disappointing.
Feeder cattle futures also finished weaker, under pressure from climbing prices of grain used for livestock feed, brokers said.
Traders kept an eye on the cash market, where prices are trading at a premium to live cattle futures. Futures trading is expected to remain sideways and choppy, brokers said.
Seasonally, it is difficult for futures to rally in the summer, said Don Roose, president of Iowa-based broker U.S. Commodities.
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.
“The cattle market is just stuck,” Roose said.
August live cattle futures settled down 0.6 cent at 132.95 cents/lb. (all figures US$). August feeder cattle dropped 0.75 cent to close at 171.725 cents/lb. and hit their lowest price since June 30.
In demand news, weekly export sales of U.S. beef were lacklustre, brokers said. Net sales of 11,000 tonnes for 2022 were down 35 per cent from the previous week and 30 per cent from the prior four-week average, according to the U.S. Department of Agriculture.
For U.S. pork, weekly net sales of 31,200 tonnes for 2022 were down three per cent from the previous week but up 23 per cent from the prior four-week average. China, the world’s largest pork consumer and producer, bought 11,400 tonnes, including cancellations of 200 tonnes, USDA said.
USDA separately reported the pork carcass cutout value rose by $2.34, to $114.53/cwt.
Globally, meat price indices rose in June, although overall food prices fell for a third consecutive month, the United Nations’ food agency said.
At the CME, most-active August lean hogs closed down 0.325 cent at 109.175 cents/lb. October hogs edged up 0.025 cent, to 94 cents/lb., and reached its highest price since April 28. Other deferred contracts were also stronger.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
