Chicago | Reuters—Chicago Mercantile Exchange cattle futures fell on Thursday after rising for four consecutive sessions, as traders booked profits and squared positions ahead of the U.S. Department of Agriculture’s monthly Cattle on Feed report due after the market’s close on Friday, analysts said.
Industry players were expecting a bullish report, with analysts surveyed by Reuters predicting a reduction of cattle placed in feedlots and marketed compared to the same period a year ago.
CME October live cattle futures LCV25 fell 0.125 cent to 234.725 cents per pound. September feeder cattle FCU25 fell 0.075 cent to 358.025 cents per pound.
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A historically low supply of cattle, which has been further constrained by the closure of the U.S.-Mexico border to feeder cattle imports, has fueled a rally in cattle futures.
Screwworm, a parasitic fly that eats livestock and wildlife alive, has moved north in Mexico toward the U.S. border and prompted the USDA to cut off Mexican cattle imports.
The import stoppage has propelled cattle futures to new heights and helped keep beef prices high.
The choice boxed beef cutout value was last up $2.01 on Thursday afternoon at $407.86 per hundredweight (cwt), according to USDA data. The select beef cutout was up 44 cents to $383.60 per hundredweight.
Despite near-record high beef prices, there have been few signs of consumer pushback.
“Consumers aren’t batting an eye in terms of demand,” Austin Schroeder, analyst at Brugler Marketing, said.
Lean hog futures ended slightly lower as CME October lean hogs LHV25 fell 0.025 cents to settle at 89.925 cents per pound.
