Chicago | Reuters — Chicago Mercantile Exchange live cattle futures climbed on Wednesday, underpinned as ranchers move up placements of calves amid drought conditions across the southern U.S. Plains, analysts said.
“The fall-weaned calves are starting to come through,” said Austin Schroeder, commodity analyst at Brugler Marketing. “Placements have been pushed ahead, with the drought.”
Cash cattle prices have remained stable this week, ranging from $148 per hundredweight (cwt) in the northern U.S. Plains to $140/cwt in the southern Plains, the U.S. Department of Agriculture (USDA) said (all figures US$).
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CME October live cattle futures climbed 0.175 cents, to 145.85 cents/lb. Nearly every month found a new life-of-contract high.
CME September feeder cattle futures climbed 1.775 cents, to 187.125 cents/lb.
In its monthly cattle on feed report on Friday, USDA is expected to show a nearly unchanged number of feedlots compared to last year, according to a Reuters survey of analysts, while marketing of cattle in July is expected to fall 2.9 per cent from a year earlier, with July placements down 1.5 per cent.
Beef prices eased, with select cuts trimming $1.23, to $237.89/cwt, while choice cuts lost $1.10, to $264.34/cwt.
Lean hog futures gained, supported by unseasonably strong cash prices.
The CME’s lean hog index, a two-day weighted average of cash hog prices eased 65 cents, to $121.06/cwt.
“It’s come off its high, but it hasn’t completely collapsed,” said Schroeder. “It probably gave a little strength to the nearby October.”
CME August October lean hogs added 1.475 cents, to 98.05 cents/lb.
Wholesale pork prices eased, with pork carcasses trimming $2.68, to $118.47/cwt, USDA said.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
