Hog futures end lower - CME

Cattle futures firm on cash market optimism
calendar icon 2 November 2023
clock icon 2 minute read

Chicago Mercantile Exchange (CME) live cattle futures closed modestly higher on Wednesday, with the benchmark December contract extending its rebound from a four-month low set last week, buoyed by technical buying and expectations of rising cash cattle prices, reported Reuters.

Sellers in the Kansas and Texas cash markets were offering slaughter-ready cattle as high as $188 per hundredweight (cwt), one broker said, while last week's cash trades in the region were mostly around $185.

Out of 1,506 cattle offered on the weekly Fed Cattle Exchange online auction, 263 steers sold at an average price of $185 per cwt, the exchange's website said on Wednesday.

CME December live cattle futures settled up 0.075 cent at 183.625 cents per pound and February ended up 0.550 cent at 185.175 cents. The market drew support from signs of new longs as CME data showed that open interest in live cattle futures increased on Tuesday as prices rose.

CME January feeder cattle closed up 0.825 cent on Wednesday at 238.025 cents per pound, bouncing after tumbling 8% during the month of October. A setback in CBOT corn futures added support, signaling cheaper costs for feed.

The cattle markets shrugged off pressure from a drop in wholesale beef prices. The US Department of Agriculture priced choice cuts of beef on Wednesday at $302.18 per cwt, down $3 from a day earlier, while select cuts fell 95 cents to $278.55 per cwt.

CME lean hog futures closed lower as traders booked profits following a seven-session climb. CME December hogs finished down 1.575 cents at 70.150 cents per pound, turning lower after rising to a three-week high of 72.075 cents in early moves.

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