Live cattle markets further recover - CME

Hog market rebounds
calendar icon 17 April 2024
clock icon 2 minute read

Chicago Mercantile Exchange (CME) live cattle futures closed higher for a second consecutive session on Tuesday as the market extended a recovery from oversold conditions, Reuters reported, citing analysts.

Bargain buying helped lift the market after the benchmark June contract fell to a three-month low on Friday. CME June live cattle settled up 1.900 cents at 175.725 cents per pound.

Feeder cattle also strengthened, with the CME May futures closing up 2.975 cents to finish on Monday at 240.975 cents per pound. The contract reached on Friday its lowest price since Dec. 26 at 232.625 cents.

Some analysts warned the markets could still see more fund liquidation that pressured cattle futures last week.

Traders will watch cash trading, after cash prices last week were about $2 per hundredweight lower than the previous week.

The US Department of Agriculture (USDA) reported that select cuts of boxed beef rose $1.30 to $292.64 per hundredweight (cwt), but the choice boxed beef cutout fell $2.86 to 298.02 per cwt.

In the hog market, most-active June futures ended up 0.375 cent at 102.825 cents per pound. The contract rebounded after falling on Monday to its lowest level since April 1 at 101.075 cents.

In China, pork output eased in January-March from a year earlier, the first quarterly decline in nearly four years, as farmers slaughtered fewer pigs to support a recovery in hog prices. The supply of hogs in China, the world's biggest pork producer and consumer, is still expected to exceed demand.

US pork exports to China were down about 20% in January and February, compared to a year earlier, according to the latest USDA data.

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