Chicago | Reuters — Chicago Mercantile Exchange cattle futures rallied on Wednesday, supported by technical buying and signs of tightening supplies in the cash market, traders said.
On a continuous basis, the front-month fed cattle contract hit its highest since November 2015. Live cattle hit a six-week high.
Hog futures ended weaker, giving up early gains after running into technical resistance.
U.S. beef processors on Wednesday slaughtered an estimated 126,000 cattle, in line with Tuesday’s total and up from 121,000 a year ago, the U.S. Department of Agriculture said. Hog slaughter was reported at 477,000 compared to 484,000 last year.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
CME June live cattle rose 3.1 cents to settle at 136.825 cents/lb. (all figures US$).
The most-active August live cattle gained 3.4 cents, to 137.525 cents, rallying through its 40-day, 50-day, 100-day and 200-day moving averages. It also broke through the high end of its 20-day Bollinger range for the first time since April 22.
CME August feeder cattle gained 3.2 cents, to 175.65 cents/lb.
Most-active July lean hog futures dropped by 1.325 cents, to 107.95 cents/lb. The contract hit resistance at its 40-day moving average.
Prices for choice cuts of boxed beef were reported at $272.39 per hundredweight on Tuesday afternoon, up 97 cents from Tuesday afternoon, while select cuts gained 45 cents to $250.01/cwt.
Carcass values in the U.S. pork cutout rose by 50 cents, to $108.33/cwt, while belly values dropped $11.41, to $154.17/cwt, USDA said.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.
