Chicago | Reuters — Chicago Mercantile Exchange live cattle futures topped a one-week high on Monday as the market recovered from steep losses last week.
Firm prices in the cash market on Friday supported the rebound in futures, brokers said.
CME December live cattle futures ended up 1.025 cents at 183.25 cents/lb. (all figures US$). The contract touched a session high of 183.75 cents, its highest price since before the U.S. Department of Agriculture issued a bearish Cattle on Feed report after trading ended on Oct. 20.
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.
The monthly report showed larger-than-expected placements of cattle into U.S. feedlots in September, knocking futures prices to June lows at the start of last week.
“We’ve recovered most of last week’s losses,” said Doug Houghton, an analyst for Brock Associates. “But based on the Cattle on Feed report, market-ready cattle supplies are considerably above a year earlier. Whether this strength can hold is another question.”
CME January feeder cattle futures on Monday closed up 1.175 cents at 236.875 cents/lb., after touching its lowest price since May on Friday.
Meatpackers slaughtered an estimated 125,000 cattle on Monday, steady from a week ago and down from 126,000 cattle a year ago, USDA said. Packers also processed an estimated 487,000 hogs, compared to 486,000 hogs a week ago and 487,000 hogs a year earlier.
CME December lean hog futures closed up 0.7 cent at 71.175 cents/lb. and hit the highest price since Oct. 10. The market is aligning with higher cash prices, analysts said.
In China, the world’s biggest pork producer and consumer, live hog prices fell almost seven per cent from a week ago, the biggest weekly decline this year. Disease outbreaks led farmers to send more pigs to slaughter for an already oversupplied market, analysts said.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
