Chicago cattle futures resumed their upward trajectory on Tuesday after Monday’s dip, which had been influenced by U.S. President Donald Trump’s threats against the Federal Reserve chair.
Most active June live cattle contracts closed at 206.275 cents per pound, up 2.525 cents. August live cattle settled at 202.450 cents a pound for a gain of 2.450 cents.
Most active August feeder cattle futures settled at 291.250 cents, up 2.100 cents per pound. May feeders closed at 286.925 cents a pound for a gain of 1.400 cents.
Boxed beef ended the day with losses, the USDA reported. Choice boxed beef was valued at $331.73 per cwt, a loss of $1.79. Select beef slid $1.12 to settle at $317.65 per cwt.
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“Cattlemen are weeding out the weak with prices tempting some to exit the business while on top,” wrote analyst Christopher B. Swift.
Swift said margins are tight in every sector and he suspects all profits from fat cattle are being invested in new inventory.
“Every sector is having to manipulate production in some manner, with expectations that not everyone can manage the amount of working capital it takes to produce a pound of beef,” he wrote.
Lean hog futures continued a steady upward march with most active June contracts settling at 100.275 cents a pound, a gain of 2.225. July lean hogs closed at 100.275 cents, up 2.025 cents a pound.
The USDA reported pork carcass cutout value at $94.38 per cwt, a loss of $0.78.
