Chicago | Reuters — CME livestock futures eased back on Friday, as traders sought profits after cattle futures hit new contract highs in the previous session and on pressure from a run-up in grains, traders said.
U.S. livestock markets will be closed Monday for the New Year holiday. On Tuesday, the markets will pre-open at 8 a.m. CT, with regular trading opening at 8:30 a.m. CT.
For cattle futures, shrinking weights of market-ready cattle and concerns over smaller supplies continues to be a concern for the sector, said Don Roose, president of Iowa-based broker U.S. Commodities.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
But traders are anticipating a bull market going into 2023, said Roose, and have factored quite a bit of premium into prices.
“We’ve got a cyclical market, where you see 3-1/2 years of liquidation of the herd, and then you see the herd size start to expand,” Roose said. “We’re now four years into the liquidation phase and a lot of people think we’ve finally bottomed out. The question mark now is what is the demand going to look like next year?”
The U.S. Department of Agriculture on Friday reported net export sales of U.S. beef in the week ended Dec. 22 at 2,300 tonnes for 2022 and net sales of 7,200 tonnes for 2023 — with Japan being the biggest buyer for both years.
Benchmark CME February live cattle fell 0.95 cent to 157.9 cents/lb. (all figures US$). March feeder cattle futures eased 0.55 cents to settle at 186.225 cents/lb.
Cattle slaughter increased after a slower pace due to last week’s winter storm, with 122,000 head processed on Friday, up from 104,000 head a week ago.
CME February lean hogs on Friday fell 0.975 cents to 87.7 cents/lb.
USDA reported net export sales of U.S. pork for the week ended Dec. 22 at 15,100 tonnes for 2022 and net sales of 30,500 tonnes for 2023 — both primarily for Mexico.
Hog slaughter rose to 477,000 head on Thursday, up from 109,000 head slaughtered a week earlier.
— P.J. Huffstutter reports on agriculture and agribusiness for Reuters from Chicago.
