Chicago | Reuters – CME live and feeder cattle futures finished higher on Friday, on the back of a tight cattle supply and the continued closure of the U.S.-Mexico border to cattle imports.
CME April live cattle LCJ26 finished 51.65 cents to end at 237.25 cents per pound, while March feeder cattle FCH26 finished 3.35 cents higher at 367.325 cents per pound.
The planned release of sterile flies in Texas and the U.S. Food and Drug Administration’s emergency use authorization for ivermectin to treat screwworm infestations further solidified the belief among market players that the border will remain closed to cattle imports.
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Cattle futures had stumbled on Thursday, breaking a three-day rally under pressure from a strike authorization vote at a JBS meatpacking plant in Greeley, Colorado, analysts said.
Last Friday, the U.S. Department of Agriculture’s biannual report stated the U.S. cattle herd had fallen to its smallest size since 1951. Despite being a week old, the report has continued to hang over Chicago cattle futures.
“We can’t get the inventory report out of our heads showing supplies remain tight,” said Dan Basse, president of AgResource Company.
Hog futures ended little changed, though strong demand for pork and a tight hog herd provided a floor on prices.
CME April lean hogs LHJ26 settled 0.425 cent lower at 97.95 cents per pound.
The USDA priced choice boxed beef ticked $2.08 higher to $369.33 per hundredweight (cwt) as of Friday afternoon, and select boxed beef rose $4.16 to $364.53 per cwt.
