Live cattle futures rise on cash market premiums - CME

Lean hog futures end mixed
calendar icon 12 July 2022
clock icon 2 minute read

Chicago Mercantile Exchange (CME) live cattle contracts firmed on Monday on technical buying and support from the premium of cash market prices to the actively traded front-month futures contract, reported Reuters.

Live cattle drew further support from firm beef prices and gains in feeder cattle futures.

"Live cattle were up on the strong cash market, especially the nearby (futures) contract which has been at a pretty big discount to cash," said Doug Houghton, analyst at Brock Capital Management.

August live cattle futures jumped 2.200 cents to 136.150 cents per pound. The contract broke through chart resistance at its 20-, 50-, 100- and 200-day moving averages during the session and settled above the key technical levels.

Cash cattle most recently traded at $137 to $138 per cwt at southern Plains feedlot markets, equal to 137 to 138 cents per pound, and above $144 per cwt in Nebraska.

Choice wholesale boxed beef cutout values gained 25 cents to $268.14 per cwt on Monday, while select cuts were up $1.15 at $243.00 per cwt, both two-week highs, according to the US Department of Agriculture (USDA).

CME August feeder cattle jumped 3.150 cents to close at 174.875 cents per pound.

Feeders drew support from tight cash market supplies and a pullback in corn prices from overnight highs.

CME lean hog futures ended mixed, with some contracts ceding gains posted last week that took the market to two-month peaks. Traders weighed modest cash pork price increases against concerns about COVID restrictions in China which could disrupt pork imports by the world's top market.

August lean hogs closed down 0.800 cent at 108.375 cents per pound. Spot July futures edged up 0.300 cent to 113.150 cents per pound.

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