CME Live cattle termination is mixed because traders are waiting for USDA data

Article content

CHICAGO – The Live Cattle Futures of the Chicago Mercantile Exchange ended mixed on Thursday as traders awaited data from the U.S. Department of Agriculture on the number of cattle in Fidelot.

The USDA’s Cattle on Feed report, scheduled for 2pm CDT (1900 GMT) on Friday, is expected to show 1.3% more US Fedlot on May 1 than a year ago, according to a Reuters survey. Records could mark a four-month increase in a row of Fidelot inventory since the current data series began in 1996, brokerage Allendele said.

Article content

The report expects placements in Fidelite in April to be 4.6% lower than last year and marketing was 2% lower.

“The U.S. beef market will be well-supplied in early September,” Allendale said.

CME June Live Cattle Futures ended flat at 131,500 cents per pound after falling to its lowest price since May 9. The most active August live kettle ended 0.325 cents per pound after falling to the lowest price on Wednesday since November 2 at 132.025 cents per pound.

Analysts say higher meat prices have recently put future pressure on U.S. demand, especially the threat of lower beef prices.

U.S. Senators Elizabeth Warren and Mike Rounds on Thursday introduced a bipartisan resolution calling on the Federal Trade Commission to investigate the possible pricing of beef companies.

The preferred cut of boxed beef has risen from 23 1.23 to $ 261.70 per cwt and the CWT has increased from $ 0.04 to $ 246.06 per select cut, the USDA said.

The CME August feeder fell 0.600 cents to 165,200 cents per pound of cattle and matched the low of 164,600 cents on Wednesday.

Lean Hogg Future, meanwhile, was weak at the CME. The June contract fell 0.800 cents to 105.300 cents per pound, reaching a two-week high. July Lean Hogs closed 1.550 cents lower at 106.975 cents per pound. (Reporting by Tom Polansek in Chicago; Editing by Devika Shyamnath)

Leave a Reply

Your email address will not be published.