Chicago | Reuters — Chicago Mercantile Exchange livestock futures crept higher on Tuesday as the cattle markets continued to rebound from multi-month lows reached last week.
Expectations for higher cash prices this week and beyond helped to underpin futures, analysts said. Cash prices improved on Friday, compared to the middle of last week.
CME October live cattle futures expired at 183.75 cents/lb., down 0.375 cent (all figures US$). That was the highest contract expiration ever for live cattle, according to AgMarket.Net and The Beef blog.
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Cattle futures set record highs this year as the U.S. herd dwindled to its lowest levels in decades.
December live cattle on Tuesday rose 0.3 cent to close at 183.55 cents/lb., after falling to June lows last week. The contract ended down 2.3 per cent for the month after recent fund liquidation, traders said.
CME January feeder cattle closed up 0.325 cent at 237.2 cents/lb., after touching its lowest price since May on Friday. The contract lost a whopping eight per cent for the month.
Demand for U.S. beef is expected to improve heading into the winter holiday season, analysts said. Tight cattle supplies are still squeezing beef processors, though.
Processors lost $16.40 for each head of cattle they slaughtered on Tuesday, compared to losses of $60.20 per head a week ago, HedgersEdge.com said. Margins for pork processors improved to positive $24.75 per hog from $19.95 per hog a week ago.
In CME lean hog futures, the December contract closed up 0.55 cent at 71.725 cents/lb. while staying within Monday’s trading range. The contract slipped 0.1 per cent for the month.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
