Chicago | Reuters — Chicago Mercantile Exchange live cattle fell three per cent on Tuesday, their biggest one-day percentage setback since early May, following the U.S. stock market tumble amid global financial concerns, traders said.
Spot-October settled 1.875 cents/lb. lower at 141.325 cents, and December down 1.8 cents at 143.625 cents (all figures US$).
Wall Street fell more than two per cent after weak data from China fanned fears that the world’s second-largest economy will constrict global growth.
Funds liquidated assets across a broad swath of commodities, and a fragile global economy could undermine U.S. exports, traders and analysts said.
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U.S. livestock: Cattle futures come down from highs
Cattle futures on the Chicago Mercantile Exchange were weaker on Monday, coming down from recent highs.
Soft beef demand, two consecutive days of futures losses and packers buying cattle for the Labour Day holiday-shortened workweek are bearish for cash prices later this week.
Impressive packer profit margins and a few packers short on inventory week might spend the same for supplies as last week.
In recent weeks, packer margins have become more positive after the decline in cash prices and periodic uptick in wholesale beef values, said West Oak Commodities analyst Tom Tippens.
Market-ready (cash) cattle bids surfaced in Kansas at $144/cwt versus up to $150 asking prices there, feedlot sources said. Last week, a small number of cash cattle in the U.S. Plains sold at $144-$147, feedlot sources said.
The morning’s wholesale choice beef price was down 46 cents, to $241.78/cwt, from Monday. Select cuts rose 28 cents, to $232.32, the U.S. Department of Agriculture said.
October futures bore the brunt of the day’s losses after the CME late on Monday unexpectedly reported 24 deliveries against that contract.
Live cattle futures losses dragged on CME feeder cattle, with September ending 1.55 cents/lb. lower at 200.275.
Hog futures end lower
CME lean hogs were pressure by soft cash prices and live cattle market selling, traders said.
Spot-October closed down 0.05 cent/lb. at 67.975 cents, and December 0.65 cent lower at 62.975.
USDA quoted the morning’s Iowa/Minnesota average cash hog price at $72.60/cwt, down 70 cents from Monday.
Labour Day plant shutdowns reduced packer needs for supplies, while a few retailers wrapped up buying before the upcoming holiday, the traders said.
Tuesday morning’s wholesale pork price was at $86.83/cwt, 99 cents higher than on Monday, supported by the nearly $10 jump in ribs, based on USDA data.
— Theopolis Waters reports on livestock markets for Reuters from Chicago.
