Chicago | Reuters — Live cattle futures on the Chicago Mercantile Exchange eased on Monday as the market pulled back slightly from life-of-contract highs set last week.
The markets remain near their peaks as tight U.S. cattle supplies continue to fuel supply concerns.
CME October live cattle futures settled 0.1 cent down at 186.975 cents/lb., and most-active December live cattle slipped 0.125 cent to end at 191.225 cents (all figures US$).
Feeder cattle futures also weakened at the CME, with the October contract settling 0.325 cent lower at 258.825 cents/lb. The contract touched its lowest price since Sept. 7 at 256.65 cents.
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Futures traders are waiting to see how the cash market for cattle performs this week, said Matt Wiegand, commodity broker for FuturesOne. Last week, cash cattle generally traded steady to about $1 higher than the previous week.
Futures prices did not show a major reaction to a monthly cattle report the U.S. Department of Agriculture issued last Friday. The inventory of cattle on feed for the slaughter market as of Sept. 1 was down about two per cent from a year earlier, while placements of cattle in feedlots during August were down about five per cent.
USDA on Thursday is slated to issue a quarterly hogs and pigs report that could provide insight into any herd reductions due to weak financial returns for producers, brokers said.
CME October lean hog futures settled flat at 81.525 cents/lb. on Monday. Most-active December hogs rose 0.35 cent to finish at 72.525 cents after dropping earlier to their lowest price since Aug. 30 at 71.625 cents.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
