Lean hog futures end mostly lower - CME

Cattle futures ease in technical setback
calendar icon 14 September 2023
clock icon 2 minute read

Chicago Mercantile Exchange (CME) live and feeder cattle futures retreated on Wednesday in a technical selling and profit-taking setback after hitting highs earlier in the week, Reuters reported, citing traders.

Higher feed corn prices and a weak tone to the cash beef market added pressure, they said.

"This is technical after feeder cattle hit a contract high yesterday and (live cattle were) trading near its contract high," said Terry Reilly, senior agricultural strategist with Marex.

"Higher corn prices are likely adding to the negative undertone," he added.

CME October live cattle futures ended down 1.000 cent at 183.150 cents per pound after coming within a penny of its contract high on Monday. December live cattle settled 0.600 cent lower at 187.850 cents.

October feeder cattle ended down 2.200 cents at 259.050 cents per pound after hitting a life-of-contract high a day earlier.

Wholesale beef prices have seasonally weakened this month.

On Wednesday, the choice boxed beef cutout was down 48 cents at $307.55 per cwt, its lowest since Aug. 15, according to US Department of Agriculture (USDA) data. Select cuts bounced from a one-month low on Tuesday to $387.19 per cwt, up $3.41.

CME lean hog futures were mostly lower, with actively traded nearby contracts pressured by technical selling and profit taking after recent peaks.

October lean hogs ended the day down 1.300 cents at 83.875 cents per pound. Actively traded December lean hogs touched a 1-1/2-month high of 77.475 cents during the session, but settled down 0.550 cent at 76.350 cents per pound.

© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.