Chicago | Reuters — Chicago Mercantile Exchange live cattle futures fell, pressured by a stagnant cash market and processing backups, traders said.
CME December live cattle futures settled down 1.225 cents at 128.325 cents/lb. January feeder cattle futures eased 2.675 cents to end at 157.325 cents/lb.
For the week, live cattle futures lost 2.35 cents, a 1.87 per cent decline.
Processing capacity has been constrained by labour shortages, which have in turn stagnated cash cattle prices, said Altin Kalo, economist at Steiner Consulting Group.
“Its stuck in neutral for a bit, without any movement,” he said. “Until we get the front-end supply current, we’re just going to spin our wheels here.”
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U.S. livestock: Cattle futures come down from highs
Cattle futures on the Chicago Mercantile Exchange were weaker on Monday, coming down from recent highs.
Cash trade was light across the U.S. Great Plains, with live cattle selling for $124 per hundredweight in the south and as high as $126.50 in the north, the U.S. Department of Agriculture said.
USDA’s monthly cattle on feed report, released after the market close on Friday, showed September cattle placements at 97 per cent year-over-year, beneath trade estimates of 101.4 per cent.
“The cattle on feed report recognized that we don’t have all these excess cattle out there and eventually that’s going to show up in the marketplace,” said Kalo.
All cattle on feed as of Oct. 1 was 99 per cent versus a year ago, while cattle marketings in September were 97 per cent year-over-year, both in line with trade estimates.
Boxed beef prices firmed, with choice cuts adding $1.16, to $281.82 per hundredweight, while select cuts firmed 39 cents, to $263.11, USDA said.
Meanwhile, U.S. frozen beef stocks were 435.342 million pounds, up four per cent from the previous month but down eight per cent from last year as of Sept. 30, USDA said.
Lean hogs firmed slightly, but ended the week lower, pressured by easing cash prices and weaker wholesale pork prices.
CME December lean hog futures settled up 0.125 cents at 73.325 cents/lb. CME February hogs ended down 0.05 cents at 76.625 cents/lb. For the week, December hogs lost 4.95 cents, a 6.32 per cent loss.
“The cash market on the product side has softened, and that has certainly pushed the selling the last couple of sessions,” said Kalo.
December hog futures lag the CME’s Lean Hog Index, a two-day weighted average of lean hog values, which fell to $84.83.
USDA reported total frozen pork supplies at 466.41 million lbs., up 2.67 per cent from last month and nearly unchanged from a year ago. Frozen pork belly stocks, at 13.032 million lbs., were down 37 per cent from last month and 44 per cent from last year.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
