Chicago | Reuters — Chicago Mercantile Exchange live cattle strengthened on Tuesday, underpinned by strong cash markets and tight supplies of market-ready cattle, though recession fears limit gains, traders said.
“We saw some pretty strong cash trade in the western corn belt yesterday,” said Alan Brugler, president of Brugler Marketing. “Our long-term bias is higher, until it becomes attractive to retain heifers on pasture.”
CME October live cattle added 0.575 cent to close at 146.3 cents/lb., after reaching 146.775, while December live cattle closed up 0.175 cent at 151.075 cents/lb. (all figures US$).
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CME feeder cattle futures eased, with October feeders slipping 2.275 cents, to 180.025 cents/lb. and November feeders lost 2.25 cents, to 181.275 cents.
Cash cattle traded was firmer to start the week, Brugler noted, but light in volume. The U.S. Department of Agriculture pegged cash trade last week at $143 per hundredweight (cwt) in the northern U.S. Plains, compared to $142 in the southern Plains.
Meanwhile, consumer beef prices remain strong, with choice cuts easing 81 cents, to $251.64/cwt, while select cuts added $1.34, to $227.23/cwt, USDA said.
CME lean hog futures gained as cash hog prices remain firm despite lower nearby futures, Brugler said.
“We’re getting the normal seasonal decline. I think the board was anticipating a little more aggressive drop in the index, and then had to rally back,” he said.
October lean hogs lost 0.425 cent to 96.475 cents/lb., while the most-active December hogs firmed 0.18 cent to 88.15 cents/lb.
The lean hog index, a two-day weighted average of cash hog values, added 0.45 cent, to 98.42 cents/lb.
USDA quoted the U.S. pork carcass cutout value down for a second day at $105.18/cwt, losing 71 cents from Monday.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
