Chicago feeder cattle futures made gains on Friday as producers snap up cattle.
Most active April feeder cattle settled up 1.225 cents per pound, at 281.200 cents. May feeders closed at 282.650 cents a pound, up 1.125 cents.
“Producers have been aggressive buying cattle as it looks like they fear they won’t be able to stay in the game if they weren’t aggressive in their pursuit,” wrote analyst Ben DiConstanzo.
“I have been told there is fear that there is a shortage of feeder weight cattle in the north as a reason for the aggressive purchases of cattle.”
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DiConstanzo said futures look to be in overbought territory, as they sit near all-time highs, and seasonally there is a downturn in cash prices.
Live cattle also made gains, with the most active June contract closing at 199.350 cents a pound, up 1.075 cents. April live cattle settled at 203.175 cents, up 1.125 cent per pound.
Choice boxed beef lost $1.42 per cwt to close at $318.27, the USDA reported. Select boxed beef settled at $306.32 per cwt, down $1.15.
Most active April lean hogs gain 1.000 cents to settle at 86.625 cents a pound. June lean hog contracts closed at 96.300 cents a pound, up 0.100 cents.
This was a nice rally after Thursday’s weak close, said DiConstanzo.
“The cash market continues to linger and futures are potentially forming a base in the short run to see if cash can recover and rally or if the weight of the tariffs and uncertainty in the negotiations break down the cash markets,” he wrote.
The USDA reported FOB plant pork cut-out valued at $97.38 per cwt, a gain of $0.09.
—Prices reported in U.S. dollars
