Reuters — Chicago Mercantile Exchange live cattle futures set a three-week high and feeder cattle hit their highest level in five weeks on Friday as cash prices rose and demand improved from meatpackers, brokers said.
The markets advanced for the fourth consecutive session as prices recovered from a steep slide that began in October after U.S. President Donald Trump said beef prices were too high.
“With the cash prices moving up, that’s giving a little bit better tailwind,” a broker said.
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Soybean futures posted their first weekly loss in eight weeks at Friday’s close. Corn and wheat futures were also lower.
CME February live cattle futures ended 3.150 cents higher at 227.150 cents per pound after reaching the highest since Nov. 12 at 227.375 cents. CME January feeder cattle closed up 2.475 cents at 339.050 cents per pound after trading up to 340.075 cents, the highest since Oct. 27.
In the cash market, cattle traded for about $220 per hundredweight this week in northern areas such as Nebraska, up about $10 from last week, brokers said. The increase reflected demand from meatpackers, they said.
Packers slaughtered an estimated 115,000 cattle on Friday, according to U.S. Department of Agriculture data. That was up from 109,000 cattle a week ago, the day after the Thanksgiving holiday, data showed.
Traders were monitoring cold weather across the central U.S. that could slow weight gain in livestock. In the Midwest, extensive snow cover was expected through next week, weather firm Vaisala said.
Hogs highest in nearly a month
In the hog market, CME February lean hog futures finished up 0.425 cent at 82.275 cents per pound and reached the highest level since Nov. 11 at 83.025 cents.
Meatpackers slaughtered an estimated 476,000 hogs, up from 402,000 a week ago, according to the USDA.
In other news, Catalonia’s regional government said it would investigate a research center outside Barcelona after Spain’s Agriculture Ministry said a recent swine fever outbreak could have been caused by a laboratory leak.
— Reporting by Tom Polansek
