Chicago | Reuters—Chicago Mercantile Exchange live cattle futures firmed for a second straight day on Wednesday as rising beef prices and strong packer demand ahead of the Memorial Day holiday weekend supported the market, analysts said.
Rising feeder cattle futures and cheaper corn feed prices also gave live cattle a lift, although gains were kept in check by macro headwinds, including a weaker U.S. dollar and economic data on Wednesday suggesting cooling consumer inflation.
CME June live cattle LCM24 climbed to a 2-1/2 week high and settled up 0.075 cent at 178.175 cents per pound while holding technical chart support at its 50- and 100-day moving averages.
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August feeder cattle futures FCQ24 closed 0.200 cent higher at 255.875 cents per pound.
“Cattle were higher thanks to the weaker corn price and pretty active buying, with packers in for the Memorial Day holiday,” said Mike Zuzolo, president of Global Commodity Analytics.
“The gains were limited … but I think a more optimistic tone is being struck in the cattle market,” he said.
Wholesale beef prices continued their recent surge on Wednesday, with the choice boxed beef cutout value up $2.38 at $306.77 per cwt after jumping by $9.82 over the prior two days, according to U.S. Department of Agriculture data. Select cuts rose 49 cents to $294.31 after rising by $9.65 over the previous two days.
Livestock traders are monitoring beef demand heading into Memorial Day, considered to be the start of the summer grilling season when consumers eat more steaks and hamburgers.
Lean hog futures remained within a recent trading range, but ended mostly lower on technical selling.
June hogs LHM24 ended down 0.825 cent at 97.500 cents per pound after failing to break through overhead chart resistance at its 100-day moving average.
