Chicago | Reuters — Chicago Mercantile Exchange live cattle futures ended higher on Monday in a rebound from recent losses, while feeder cattle futures stumbled under pressure from rising costs for grains used for livestock feed.
Live cattle were technically oversold and due for a bounce, brokers said. Futures were also due to rally because they are at a discount to cash prices, they said.
Nearby June live cattle futures rose 1.1 cents to close at 133.175 cents/lb. (all figures US$). Most-active August live cattle jumped 1.55 cents to end at 133.9 cents/lb., after dropping on Friday to its lowest price since November.
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August feeder cattle slipped 0.6 cents to end at 167.425 cents/lb. and touched a new low of 166 cents.
Rising futures prices for wheat and corn, used for feed, helped knock down feeder cattle, traders said.
Starting on June 1, exchange owner CME Group will expand daily trading limits for live cattle to 5.75 cents from five cents as part of an annual resetting, according to a notice. Feeder cattle limits will increase to seven cents from 6.25 cents.
In the hog market, meanwhile, futures prices ended higher, extending gains from Friday.
CME June lean hog futures ended up 3.075 cents at 103.825 cents/lb. July lean hogs closed 3.6 cents stronger at 104.8 cents/lb.
The market has rebounded after dropping on Thursday to its lowest prices since January, traders said.
U.S. pork cutout values were mostly firmer. Carcasses were priced at $101.55/cwt, up 38 cents, while pork bellies climbed by $8.20, to $155.52/cwt, the U.S. Department of Agriculture said.
In other news, Mexico, an importer of U.S. hams and other food, said it will waive import duties for one year on a range of household staples in a bid to curb inflation. Products on the government import list included pork and beef.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
