After the market closed, the U.S. Department of Agriculture reported that the nation’s cattle herd was 94.2 million head as of July 1, a record low for that date.

In a separate report, USDA said that as of July 1, there were two per cent fewer cattle in U.S. feedlots compared to a year earlier. Analysts had expected USDA to show 0.8 per cent fewer cattle, according to a Reuters News poll.

Still, much of the market’s attention early in the trading session was focused on U.S. President Donald Trump’s social media posts, where he said the United States would sell “so much” beef to Australia after Canberra said it would relax import restrictions.

Almost immediately, economists, market analysts, and commodity traders interviewed by Reuters questioned Trump’s assertion.

U.S. beef prices set records this year after ranchers slashed their herds due to drought that burned up pasturelands used for grazing.

Now, a ban on cattle imports from Mexico because of New World screwworm, a devastating livestock pest, and steep tariffs on Brazilian beef that are set to take effect on August 1 could further tighten U.S. meat supplies and require additional imports of Australian beef.

“Are we going to be selling a bunch of beef to Australia right now? Absolutely not,” said Dan Norcini, an independent livestock trader. “The cattle numbers just aren’t there.”

CME August live cattle futures LCQ25 settled up 0.675 cent at 226.475 cents per pound, while most-active October live cattle futures LCV25 ended up 1 cent at 223.150 cents per pound.

CME August feeder cattle futures FCQ25 ended 2.475 cents higher at 331.375 cents per pound. CME September FCU25, October FCV25 and November FCX25 feeder cattle futures set fresh contract highs during the session.

Meanwhile, lean hog futures were mostly lower, as traders are growing concerned that top-buyer Mexico will roll out retaliatory tariffs on U.S. pork next month, market analysts said.

CME August lean hog futures LHQ25 ended up 0.500 cent at 108.700 cents per pound, while most-active October LHV25 ended 0.500 cent lower at 90.600 cents per pound.

The post U.S. livestock: Cattle futures climb as U.S. herd remains small appeared first on Farmtario.

Recent strength in wholesale beef prices also encouraged continued buying despite a seasonal tendency for the market to decline after the Thanksgiving holiday into early December, pressured by expectations for slower beef demand in January.

“So far that bearish seasonal hasn’t really played out just yet … For now the market doesn’t have evidence yet that this normal hit to demand is being seen,” said Rich Nelson, chief strategist at Allendale Inc.

“You can also argue that the Trump tariff concerns with Mexico and Canada might keep a couple of cattle off of our borders,” he said.

CME February live cattle LCG25 gained 0.450 cent to 189.075 cents per pound. January feeder cattle FCF25 added 2.450 cents to end at 259.300 cents per pound.

The choice boxed beef cutout scaled to a one-month high on Monday before slipping by $2.18 on Tuesday afternoon to $310.83 per cwt, according to the U.S. Department of Agriculture. The select cutout also declined, shedding $1.67 to $275.33 per cwt.

Overshadowing the market, however, was news of layoffs at grains merchant and beef packer Cargill a day after news that Tyson Foods will close a meat processing plant in Kansas.

CME lean hog futures approached fresh contract highs on Tuesday, supported by concerns that tariffs on Canadian imports would curb hog supplies. But the market closed out the day in the red as buying interest faded.

February hogs LHG25 settled down 0.100 cent at 87.850 cents per pound.

The post U.S. livestock: Cattle futures bounce on tight supplies, firm cash markets appeared first on Farmtario.

Feeder cattle gained for a sixth straight session and set fresh multi-month highs with demand continuing for stocker calves after rains this month replenished grazing pastures in the southern Plains.

“You’ve seen some pretty strong cash markets in the feeders this last week or two,” said Austin Schroeder, commodity analyst at Brugler Marketing and Management.

CME January feeder cattle FCF25 settled up 0.850 cent at 254.300 cents per pound, its highest since July. February live cattle LCG25 futures closed up 0.775 cent at 188.200 cents per pound.

Traders also squared positions ahead of the USDA Cattle on Feed report, released after trading ended on Friday.

The report showed that October placements of cattle in U.S. feedlots were 5 per cent greater than last year. That’s higher than trade expectations for a 3.8 per cent gain, according to a Reuters poll of analysts.

On the wholesale market, choice boxed beef gained 62 cents to $307.41 per hundredweight on Friday afternoon, according to the USDA. Select boxed beef fell 85 cents to $272.07 per cwt.

Beef packers, meanwhile, were estimated to be losing an average of $32.10 per head on Friday, according to livestock marketing advisory service HedgersEdge. That was smaller than both Thursday’s loss of $39.60 and a loss of $72.90 per cwt last week.

CME lean hog futures advanced for a third day on Friday, with most-active February futures LHG25 up 1.025 cents at 85.675 cents per pound.

The CME lean hog index price was $87.44 for the two days ended Nov. 20.

In the wholesale pork market, the USDA priced pork carcasses on Friday afternoon at $91.77 per cwt, down $1.30 from Thursday.

The post U.S. livestock: CME cattle futures rise on cash trade, positioning ahead of USDA report appeared first on Farmtario.

Live cattle futures touched a one-month low, while feeder cattle recovered after reaching the lowest price in more than five weeks.

An uptick in pork belly prices and retailer buying of ham ahead of the Thanksgiving and Christmas holidays added steam to a rally in hog futures, said Altin Kalo, economist at Steiner Group. Beef demand has also remained strong, particularly for pricier cuts of meat ahead of the holiday season, he said.

An unexpectedly low number of slaughter-ready U.S. hogs and strong demand have propelled hog futures higher for months, after lower pork belly prices are thought to have enticed buying, analysts said.

Wholesale values for the pork carcass cutout, hams and bellies ticked up, U.S. Department of Agriculture data showed on Friday afternoon.

CME December lean hog futures LHZ24 settled up 0.275 cents at 84.075 cents per pound.

December live cattle LCZ24 ended down 0.375 cents at 185.925 cents per pound and hit the lowest price since Oct. 1. November feeder cattle futures FCX24 settled up 1.5 cents at 246.875 cents per pound after falling earlier to the weakest price since Sept. 26.

“The cattle market has found some stability but it’s drifting lower as the wholesale index goes lower,” Kalo said.

The choice boxed beef cutout fell $1.26 to $316.34 per hundredweight, the USDA reported Friday afternoon. Select boxed beef prices dropped $0.34 to $285.03 per cwt.

The post U.S. livestock: Hog futures hit contract highs as strong demand fuels rally appeared first on Farmtario.

Live cattle futures also edged higher on a strong cash market, although large cattle weights and beef demand worries amid a slumping stock market limited gains and kept the market range-bound, they said.

“The hog market is finding support from seasonal demand but the cattle market is more of a trading range mindset,” said Mike Zuzolo, president of Global Commodity Analytics.

“Cattle are almost 40 pounds heavier than last year at this time, and we have a weaker stock market. I would say cattle is hemmed in by strong negotiated cash prices at the end of last week versus big weights and a weaker stock market,” he said.

Wall Street’s three major indexes closed down around 1 per cent on Monday, as traders tamped down bets for Federal Reserve interest-rate easing and worried about the Middle East conflict’s impact on oil prices.

Benchmark CME December lean hog futures LHZ24 jumped 0.675 cent to end at 76.825 cents per pound after earlier touching their highest price since mid May. Lightly traded spot October hogs LHV24 shed 0.050 cent to end at 83.975 cents.

CME December live cattle futures LCZ24 settled up 0.025 cent at 187.025 cents per pound. CME November feeder cattle futures FCX24 ended down 0.125 cent at 249.150 cents per pound.

Cattle futures are very overbought technically following a recent run to multi-month highs, and managed funds are holding a large net long position in the market.

The post U.S. Livestock: CME lean hogs hit 5-mth peak on demand, cattle range bound appeared first on Farmtario.

Hog futures touched their highest level in four months before retreating.

Benchmark CME December live cattle futures LCZ24 settled up 0.600 cent at 187.000 cents per pound. CME November feeder cattle futures FCX24 ended up 1.150 cents at 249.275 cents per pound and hit their highest price since Aug. 1.

“The market is extremely overbought, technically,” said Cassie Fish, analyst and author of the Beef blog. She added that managed funds have been buying in significant amounts.

Fish said the better-than-expected September jobs data lent support to the cattle market.

Nonfarm payrolls increased by 254,000 jobs last month after rising by an upwardly revised 159,000 in August. Economists polled by Reuters had forecast payrolls rising by 140,000 positions.

With retail beef prices high, Fish said, encouraging economic news is supportive to cattle prices.

“People have got to be working if they’re going to pay the most they’ve ever paid,” she said.

Fish said there have been production reductions by meat packers, which appear to be stabilizing boxed beef prices. Packer margins are still in the red, spurring that reduction.

“The talk is that we’re going to see even bigger production reductions in the next three weeks,” Fish said.

The U.S. Department of Agriculture priced choice cuts of boxed beef on Friday at $302.36 per hundredweight (cwt), up $2.56 from Thursday. Select cuts rose $3.85 to $287.14 per cwt.

Meanwhile, cattle feeders are in a standoff with packers that buy their livestock, said Fish.

“The cattle feeder feels like he has the advantage,” she said, holding out for more money after the week’s futures rally, which also provided support.

CME December lean hog futures LHZ24 lost 0.250 cent to end at 76.150 cents per pound after earlier touching their highest price since May. Nearby October hogs LHV24 ended down 0.150 cent at 84.025 cents.

The post U.S. livestock: Cattle futures rise on technical buying, economic news appeared first on Farmtario.

Benchmark CME December live cattle futures LCZ24 settled down 1.300 cents at 186.400 cents per pound. CME November feeder cattle futures FCX24 ended down 0.425 cent at 248.125 cents per pound.

CME December lean hog futures LHZ24 lost 0.500 cent at 76.750 cents per pound, while nearby October hogs LHV24 ended up 1.175 cents at 84.175 cents.

Earlier support came from concerns with the export market stemming from the dock workers strike in the U.S., said Don Roose, founder of U.S. Commodities.

The U.S. East Coast and Gulf Coast dockworkers are in the midst of their first large-scale strike in nearly 50 years.

The strike, which entered its third day on Thursday, halted the flow of about half the country’s ocean shipping and has impacted some beef and frozen seafood product imports, traders and industry members said.

“The longer it goes, the worse it is,” said Roose.

“Like we say in the meat business – you either sell it or smell it,” he said.

Wholesale choice beef prices also fell, adding pressure on cattle futures. The U.S. Department of Agriculture priced choice cuts of boxed beef on Thursday at $299.49 per hundredweight (cwt), down 32 cents from Wednesday. Select cuts rose 55 cents, to $284.48 per cwt.

The post U.S. livestock: CME cattle futures fall as U.S. port strike continues appeared first on Farmtario.

Some 45,000 union workers could walk off the job at seaports on the East and Gulf Coasts starting Monday, cutting off vital trade arteries. The dispute could affect availability of a range of goods from bananas to cars shipped via container, while creating weeks-long backlogs at ports.

“A strike could bring pressure on the hogs as it would hit exports of pork coming out of the East Coast,” said Dan Norcini, an independent trader.

CME December lean hog futures LHZ24 settled down 0.550 cent at 73.375 cents per pound and February hogs LHG25 ended down 0.325 cent at 77.500 cents.

Traders were digesting data from a pair of U.S. Department of Agriculture reports released after Thursday’s market close. The USDA said in its quarterly hogs and pigs report that the U.S. hog herd as of September 1 was 76.5 million head, up slightly from a year earlier and in line with trade expectations. The herd was up almost 2% from June 1.

However, Thursday’s monthly USDA Cold Storage report was supportive, Norcini said, in showing a 30% year-on-year drop in stocks of frozen pork bellies as of Aug. 31.

CME live cattle futures closed mostly lower on Friday. Benchmark December live cattle LCZ24 settled down 0.350 cent at 184.475 cents per pound, retreating after climbing to 185.600 cents, the contract’s highest since Aug. 1.

CME November feeder cattle futures FCX24 rose, settling up 0.725 cent at 245.700 cents per pound.

The USDA priced choice cuts of boxed beef on Friday afternoon at $296.69 per hundredweight (cwt), up 32 cents from Thursday’s four-month low. But select cuts fell by 29 cents, at $282.08 per cwt.

The USDA reported Friday’s cattle slaughter at 116,000 head, up from 108,000 head a week earlier. LIV/KILL

The post U.S. livestock: CME lean hog, live cattle futures end mostly lower appeared first on Farmtario.

Lean hog futures also fell as industry players anticipated a large supply of heavy hogs to hit the market within the next months.

Beef and pork demand has eased as the United States nears the end of the outdoor grilling season and cooler weather approaches.

Most-active CME October live cattle LCV24 closed down 2.075 cents at 175.175 cents per pound. Most-active CME October feeder cattle FCV24 finished down 3.625 cents at 230.95 cents per pound.

Most-active CME October lean hog futures LHV24 settled down 1.2 cent at 79.5 cents per pound.

U.S. employment increased less than expected in August, Labor Department data showed on Friday. The closely watched employment report also showed solid wage growth last month, which should help to support consumer spending and keep the economy out of recession for now.

Nonetheless, labor market momentum has slowed, with 86,000 fewer jobs added in June and July than previously reported.

“The last three years the labour market’s been on a downward trend, and it’s not encouraging,” Altin Kalo, economist at Steiner Group, said. “There’s a strong correlation between labor market and food service demand.”

A downturn in restaurant spending often signals trouble for cattle futures, as many restaurant meals involve beef.

Select boxed beef prices fell on Thursday afternoon, with prices down $0.66 at $296.12 per hundredweight (cwt), U.S. Department of Agriculture data showed. Choice boxed beef cutouts fell $2.10 to $309.41 per cwt.

Pork carcass cutout prices rose by $1.27 to $96.14 per cwt, according to USDA data.

The post U.S. livestock: CME cattle fall amid fears over labour market appeared first on Farmtario.

Hog futures also fell on a seasonal lull in prices and a strong supply of heavy hogs. Beef and pork demand has eased as the U.S. nears the end of the outdoor grilling season.

Tyson Foods’ CFO Curt Calaway noted during an investor webcast that consumers are gravitating toward chicken and ground beef instead of higher priced steaks.

Calaway said U.S. cow producers have stopped slashing their herds after tight supplies pushed up beef prices. Producers have not started rebuilding the herd in a meaningful way, though, he said.

“It’s a question of demand going forward because the consumer is hurting,” independent livestock trader Dan Norcini said.

Investors assessed a mixed set of reports, including a decline in weekly jobless claims and an ADP survey which showed employers hired the fewest number of workers in 3-1/2 years in August.

Most-active CME October live cattle LCV24 closed down 1.975 cents at 177.25 cents per pound. Most-active CME October feeder cattle FCV24 finished down 2.875 cents at 234.575 cents per pound.

Select boxed beef prices fell on Thursday afternoon, with prices down $2.61 at $296.78 per hundredweight (cwt), U.S. Department of Agriculture data showed. Choice boxed beef cutouts fell $0.09 at $311.51 per cwt.

Pork carcass cutout prices fell by $0.12 at $95.17 per cwt, according to USDA data. Ham and pork belly values also fell.

Most-active CME October lean hog futures LHV24 settled down 0.875 cent at 80.7 cents per pound.

In other news, a recent anthrax outbreak among Wyoming cattle prompted a spurt of “fear-based selling,” Rich Nelson, chief strategist at Allendale, said.

The Wyoming Livestock Board reported on Tuesday that anthrax, a disease caused by bacteria that lays dormant in soil, affected multiple cattle herds in the state. Livestock with anthrax can suffer sudden death, weakness and other symptoms, the board said.

The post U.S. livestock: CME cattle fall as consumers opt for cheaper meats appeared first on Farmtario.