Indianapolis | Reuters — Chicago Mercantile Exchange live cattle futures were mixed on Thursday, with nearby contracts firming, while the most-active cattle futures eased pressured by inflationary concerns, though markets remain underpinned by tight cattle supplies across much of the U.S. Plains, analysts said.
“The weakness comes from the uncertainty of the economy – how well is the consumer holding up and what is the future of demand,” said Scott Varilek, broker at Kooima, Kooima, Varilek Trading Inc.
Wholesale beef prices eased for the fourth consecutive day, with choice cuts falling $1.06, to $267.16/cwt, and select cuts losing 30 cents, to $245.38, according to U.S. Department of Agriculture data (all figures US$).
Read Also
U.S. grains: Wheat futures rise on supply snags in top-exporter Russia
U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
At the CME, June live cattle settled up 0.2 cents at 137.75 cents/lb., while the most-active August contract eased 0.5 cents, to 136.3 cents/lb.
CME August feeder cattle lost 1.975 cents to settle at 171.3 cents/lb.
Despite easing consumer demand, Varilek said packers are actively pulling cattle forward to keep slaughter lines running, which is supportive to futures and cash cattle, which traded in the northern U.S. Plains above $145 per hundredweight, according to USDA, while southern Plains cattle brought $140/cwt.
Beef slaughter pace so far this week was ahead of the same week last year at 495,000 head, but lagged last week’s pace of 503,000 head.
Hog futures were supported as supplies of market-ready hogs continue to struggle, Varilek said.
CME July lean hog futures added 1.3 cents, to 109.575 cents/lb., while most-active August hogs added 1.7 cents, to 106.025 cents/lb.
The CME lean hog index, a two-day weighted average of cash hog prices, firmed 44 cents, to $108.57/cwt.
Strong export sales added support, with U.S. exporters selling 27,600 tonnes of pork during the week ended June 9, up 65 per cent from the previous week and up one per cent from the prior four-week average, USDA said.
— Reporting for Reuters by Christopher Walljasper in Indianapolis.
