Chicago | Reuters — Live cattle futures at the Chicago Mercantile Exchange eased on Tuesday on softer holiday demand, after climbing to three-week highs a day prior due to tighter-than-expected cattle supplies, traders said.
“With a short week, you won’t have to have as aggressive a cash trade to fill out the packer needs for the week. So that takes the spark away from hogs and cattle,” said Matt Wiegand, risk management consultant at FuturesOne.
Most-active CME February live cattle futures eased 0.3 cent to 156.425 cents/lb. after reaching 156.875 cents (all figures US$). Nearby December live cattle added 0.25 cent to finish at 153.8 cents/lb.
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.
CME January feeder cattle lost 0.95 cents to 181.675 cents/lb.
Boxed beef values firmed, with choice cuts adding $1.06, to $256.63/cwt, while select cuts gained 95 cents, to $234.18, the U.S. Department of Agriculture said.
U.S. frozen beef stocks in cold storage through October 31 fell three per cent from September to 509.949 million lbs., USDA said in a report released after the markets closed. Frozen beef is up eight per cent from the same month a year earlier.
CME lean hog futures also trimmed on Tuesday, lacking direction ahead of USDA’s cold storage report that showed lower month-over-month supplies but a sizeable increase compared to 2021.
U.S. frozen pork belly stocks of 40.196 million lbs. as of October 31 were up 246 per cent from last year, USDA said.
“Bellies are much more plentiful, which should keep the cutout from getting too carried away,” Wiegand said.
The most-active February lean hogs contract settled down 0.075 cent at 90.075 cents/lb.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
