Chicago | Reuters — Chicago Mercantile Exchange live cattle contracts edged higher on Monday, while feeder cattle contracts fell, after U.S. government data released on Friday afternoon showed bigger-than-expected supplies in feedlots.
The U.S. Agriculture Department’s monthly report showed that the number of U.S. cattle on feed, as of April 1, was down four per cent from a year earlier — which beat analysts’ expectations. USDA reported March placements of cattle into feedlots as down one per cent, compared with expectations for a 5.2 per cent drop.
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Chicago Board of Trade corn futures extended slight gains on Tuesday as short covering and bargain buying continued to support a rebound from contract lows reached during the previous session.
Traders also noted some profit-taking in the feeder cattle contracts.
CME’s April live cattle futures settled up 0.325 cent at 174.3 cents/lb. (all figures US$). Most-active June live cattle contract gained 0.025 cent, to 164.55 cents, settling above its 10-day moving average.
CME April feeder cattle ended down 1.225 cents at 202.55 cents/lb. Most-active August feeder cattle dropped 0.55 cent, to 229.325 cents, after hitting a contract high on Friday.
CME May lean hogs gained 0.675 cent, to 77.7 cents/lb. June lean hogs settled up 1.275 cents at 87.35 cents/lb.
June hogs rose above their 10-day moving average after hitting resistance at that key technical point on Friday.
Tyson Foods is diverting pigs from a Nebraska processing plant after a weekend fire kept the facility closed on Monday. Tyson said the plant, which typically slaughters roughly 8,250 hogs a day, will have limited operations for the rest of the week.
— Reporting for Reuters by Mark Weinraub in Chicago.
