Chicago | Reuters — Chicago Mercantile Exchange live cattle futures surged on Thursday as cash cattle traded as high as US$180/cwt in Texas and Kansas, up to US$9 higher than last week, reflecting strong demand from meat-packers amid rising beef prices and tightening cattle supplies, traders said.
CME’s most-active August live cattle futures contract settled up 4.7 cents at 172.375 cents/lb. after setting a life-of-contract high at 172.5 cents (all figures US$). August feeder cattle rose 2.475 cents to settle at 241.65 cents/lb. after posting a contract high at 242.05 cents.
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“Boxed beef prices continue to go higher, cash cattle continue to go higher. (There is) not a whole lot of supply out there, and still a lot of demand,” said Ted Seifried, chief agriculture strategist for the Zaner Group.
The U.S. Department of Agriculture priced choice cuts of beef late Thursday at $306.44/cwt, up 60 cents from Wednesday and the highest since May 10, while prices for select cuts fell 83 cents to $286.32/cwt.
CME lean hog futures closed mostly lower. The benchmark July contract settled down 1.275 cents at 82.05 cents/lb., halting a two-session recovery bounce after last week’s life-of-contract lows.
Wholesale pork prices inched higher, with the carcass cutout up 41 cents at $85.68/cwt, according to USDA data.
Traders await USDA’s weekly export sales report on Friday, a day later than normal due to Monday’s holiday, for a gauge of export demand for U.S. pork and beef.
— Julie Ingwersen is a Reuters commodities correspondent in Chicago.
