Chicago | Reuters — Live cattle futures on the Chicago Mercantile Exchange closed higher on Tuesday, rallying from early declines, as strong beef prices and tight cattle supplies buoyed futures, traders said.
CME August live cattle futures settled up 0.725 cent at 173.925 cents/lb. (all figures US$). August feeder cattle finished up 1.4 cents at 240.45 cents/lb.
In the wholesale beef market, the U.S. Department of Agriculture (USDA) priced choice cuts of beef at $337.99/cwt, up 56 cents from Monday and the highest since Sept. 1, 2021. Prices for select cuts fell 76 cents, to $309.48/cwt.
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Chicago Board of Trade corn futures extended slight gains on Tuesday as short covering and bargain buying continued to support a rebound from contract lows reached during the previous session.
Cattle futures continued to draw support from strong cash cattle markets, even though cash trade has been quiet so far this week. USDA reported last week’s average five-area steer price at $188.75/cwt, a premium of about $9 per cwt, or nine cents/lb., to front-month CME June futures, which settled Tuesday at 179.425 cents/lb.
CME hog futures closed mixed, with the most-active July contract settling down one cent at 90.6 cents/lb., pausing after Monday’s six-week high. August hogs ended Tuesday up 0.05 cent at 87.425 cents/lb.
Wholesale pork prices firmed, a supportive signal for hog futures. USDA priced the carcass cutout at $89.52/cwt on Tuesday afternoon, up $1.32 from Monday and the highest since late December.
— Julie Ingwersen is a Reuters commodities correspondent in Chicago.
