Chicago | Reuters — Chicago Mercantile Exchange live cattle futures firmed for a second session on Monday, supported by a bigger-than-expected drop in cattle placements in July, reported after market close on Friday.
“In terms of slaughter ready cattle, we’re still relatively tight,” said Austin Schroeder, analyst at Brugler Marketing.
In the U.S. Department of Agriculture’s (USDA) monthly Cattle on Feed report, the agency reported cattle placements into feedlots during July totaling 1.62 million head, down 8.3 per cent from 2022, versus analysts’ expectations of a 5.5 per cent decline.
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Most-active October live cattle added 1.05 cents, to 179.875 cents/lb. (all figures US$). September feeder cattle firmed 1.8 cents to close at 250.325 cents/lb.
Extreme heat forecast for the U.S. Plains in the coming week could add stress to feedlot cattle, said Schroeder.
“Especially in the cattle that are in the last 30 days on feed, those are the ones you’re the most worried about because they have the most risk of heat stress,” he said.
Boxed beef prices eased, with choice cuts trimming 55 cents, to $315.56 per hundredweight (cwt), while select cuts fell $1.03/cwt.
Beef packers slaughtered 122,000 head on Monday, up from 119,000 last Monday but down 1,000 from the same day last year, USDA said.
The lean hog market eased as cash hog prices continue a seasonal slide, analysts said.
The most-active October futures eased 1.5 cents, to 80.625 cents/lb.
The CME’s Lean Hog Index fell to 99.61 cents/lb., its lowest since July 11.
USDA quoted the wholesale pork carcass cutout at $105.21/cwt, down 96 cents from Friday.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
