Chicago | Reuters — Chicago Mercantile Exchange feeder cattle futures fell on Friday, pressured by rising corn prices, while live cattle futures inched up as traders anticipated seeing the cash trade improve, traders said.
Meanwhile, lean hog futures rose on short-covering ahead of the weekend.
The cattle market has been battered by boxed beef prices slipping, and the beef sector has wrestled with bigger supplies for months.
The trade, however, has been expecting those trends to slowly shift as export and domestic demand grows, said Brian Hoops, president of Midwest Market Solutions.
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Choice cuts of boxed beef prices rose by 97 cents, to $281.29/cwt, while select cuts were up 80 cents, to $261.48/cwt, according to the U.S. Department of Agriculture on Friday (all figures US$).
Still, concern over a stagnant U.S. economy, and whether that could sour consumer interest in more expensive cuts of meat this holiday season, is growing, Hoops said.
“We’re seeing inflation at the highest in 13 years,” Hoops said. “This winter, people are going to be paying more to heat their homes, pay more for gas in their cars. The question I have is, will that soften demand for beef?”
On Friday, the nearby October live cattle futures settled just 0.225 cent higher at 125.975 cents/lb. And the most-active December live cattle futures settled up 0.675 cent at 130.975 cents/lb.
The nearby October feeder cattle futures settled down 0.85 cent at 157.575 cents/lb.. Most-active January feeder cattle slipped 0.825 cent, to 161.525 cents/lb.
Most-active December lean hogs settled up 0.95 cent at 78.275 cents/lb. February lean hogs closed up 1.025 cents at 81.325 cents/lb.
— P.J. Huffstutter reports on agriculture and agribusiness for Reuters from Chicago.
