Lean hog contracts settle up - CME

Live cattle futures jump on supportive USDA feedlot data
calendar icon 23 April 2024
clock icon 2 minute read

Live cattle futures on the Chicago Mercantile Exchange (CME) surged on Monday after the US Department of Agriculture (USDA) reported on Friday that placements of cattle into US feedlots during March were smaller than analysts expected, Reuters reported, citing traders.

In a monthly report released after the CME closed on Friday, the USDA said 1.75 million head of cattle were placed in feedlots during March, down 12% from a year ago, while analysts surveyed by Reuters on average had expected a smaller decline of only 7%. The figure signals a reduced number of market-ready cattle later this year, at a time when the total US cattle herd is the smallest in more than 70 years.

The total number of US cattle on feed as of April 1 was 11.8 million head, up 1% from a year ago, the USDA said, while analysts on average had expected a 2.1% increase.

"Cattle futures are notably higher following a rare friendly USDA 'Cattle on Feed' report on Friday afternoon and higher-than-expected slaughter totals from last week," StoneX chief commodities economist Arlan Suderman wrote in a client note.

CME June live cattle settled up 2.375 cents at 178.050 cents per pound, opening and trading above its 100-day moving average, and the August contract ended up 2.850 cents at 176.400 cents.

Feeder cattle futures also rose. The May contract climbing 3.175 cents to end at 245.175 cents per pound and most-active August feeders settled up 4.975 cents, nearly 2%, at 258.475 cents.

Wholesale beef prices firmed, stabilizing after last week's declines. The USDA priced choice cuts of boxed beef at $295.93 per hundredweight (cwt), up 26 cents from Friday's two-month low.

In lean hogs, CME's benchmark June contract settled up 0.675 cent at 105.500 cents per pound. July hogs rose 1.200 cents to 107.675 cents.

The USDA priced the pork carcass cutout at $101.70 per cwt, up $1.61 from Friday.

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