Chicago | Reuters — Chicago Mercantile Exchange live cattle and feeder cattle futures ended higher on Friday as livestock traders adjusted positions in the markets.
After the close of trading, the U.S. Department of Agriculture issued monthly data that showed producers placed 3.8 per cent more cattle into feedlots in October than a year earlier, below analysts’ expectations for a 4.9 per cent increase.
Lower-than-expected placements may support futures prices next week, though money flows and positioning ahead of the U.S. Thanksgiving holiday could overrule supply factors, analysts said.
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Cattle weighing more than 700 lbs. in feedlots signal the sector will be well supplied early next year, when the animals will become heavy enough to be slaughtered, said Altin Kalo, agricultural economist for Steiner Consulting. Supplies may not be as large heading into April, May and June, he said, signaling tightness for the sector.
“We have a total supply on feed that is a little bit front heavy,” Kalo said.
USDA said there were 11.9 million cattle on feed for the slaughter market on Nov. 1, up 1.7 per cent from a year earlier. That was close to analysts’ expectations for a 1.8 per cent increase.
Cattle marketings in October were down 2.5 per cent from a year ago, compared to analysts’ estimates for a decline of 2.1 per cent.
CME December live cattle futures closed one cent stronger at 175.75 cents/lb., before the U.S. issued its monthly data (all figures US$). February 2024 live cattle futures advanced 1.475 cents to 176.8 cents/lb.
January 2024 feeder cattle futures rose one cent to 228.5 cents/lb.
Cash cattle prices traded around $178/cwt in Texas, Kansas and Nebraska this week, down about $2 from last week, traders said.
In Brazil, JBS, the world’s leading meatpacker, on Monday will reopen a large Brazilian beef unit at Diamantino in Mato Grosso state. JBS also announced plans for a major expansion at the plant, which had been closed since a fire in June.
In the pork market, CME December lean hog futures dipped 0.5 cent to end at 70.975 cents/lb.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
