Chicago | Reuters — Chicago Mercantile Exchange cattle futures gained on Monday as cattle processing picked up, led by strong beef prices, while feed cattle gained on tight supplies and a lower corn trade, analysts said.
CME June live cattle futures added 2.2 cents to 118.225 cents/lb., while August feeder cattle futures finished 4.425 cents higher at 144.275 cents/lb.
Daily cattle slaughter climbed to 119,000 head processed on Monday, up 5,000 from a week earlier.
“We showed improvement on packer runs to start the week,” said Matthew Wiegand, Risk Management Consultant at FuturesOne. “We’ll need to continue that all week.”
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Chicago Mercantile Exchange live cattle and feeder cattle futures rebounded on Friday from a steep drop during the previous session.
Beef packers have been enjoying strong margins lead by strong consumer demand.
Prices for select cuts of beef shipped to wholesalers added $3.49, to $293.76/cwt, according to the U.S. Department of Agriculture, while choice cuts gained $3.23, to $309.11/cwt.
Packer profits climbed to $737.10 per head, up from $659.65 a week earlier, according to livestock marketing advisory service HedgersEdge.com.
Feeder cattle gained from a dip in the corn market, after the feed grain climbed to new eight-year highs last week.
CME lean hog futures eased for a second consecutive session, though it remains near recent highs.
CME’s most-active June lean hogs fell 0.75 cents to 112.1 cents/lb., while back-month contracts reached new lifetime highs.
Hog slaughter improved from last week, with 483,000 head processed on Monday, but remains soft, Wiegand said.
“We got off to a good start this week, but we’re still showing tight numbers nearby,” he said.
The CME lean hog index, a two-day weighted average of cash prices, climbed to $109.22/cwt.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
