Chicago | Reuters — Chicago Mercantile Exchange Group live cattle futures firmed on Thursday, supported by steady cash prices across the U.S. Plains, as well as strength in consumer beef demand, despite inflationary forces, analysts said.
“The feeling two, three weeks ago was that beef demand wasn’t that good and was going to really start to struggle, given the inflationary pressures we are seeing,” said Altin Kalo, economist at Steiner Consulting Group.
Boxed beef prices remain above five-day averages, with choice cuts falling 67 cents on Thursday to $266.75/cwt, while select cuts firmed $1.28, to $250.19/cwt, according to U.S. Agriculture Department data. (all figures US$).
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CME June live cattle gained 0.825 cents, to 133.625 cents/lb., while the most-active August live cattle gained 1.225 cents, to 134.125 cents/lb.
CME August feeder cattle added 3.225 cents, to 172.95 cents/lb.
Cash cattle prices have pulled futures higher, Kalo said, ranging from $139/cwt in the northern U.S. Plains to $135/cwt in Texas and Oklahoma, USDA said.
Packer pace was firm, with processors slaughtering 127,000 heads of cattle on Thursday, 3,000 more than a week ago and 6.72 per cent more than same day a year ago.
Meanwhile, CME lean hog futures were little changed after strong gains on the previous day, as analysts attempt to gauge consumer appetite for pork through the summer.
“Everybody’s wondering what demand is going to look like, come July and August,” said Kalo.
The nearby June hogs contract inched up 0.25 cents, to 110.05 cents/lb. Most-active July hog futures eased 0.25 cents, to 112.175 cents/lb.
The CME’s lean hog index, a two-day weighted average of cash hog prices, fell 24 cents to $104.91/cwt.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
