Chicago | Reuters — Chicago Mercantile Exchange live cattle futures on Tuesday rose for a second consecutive session as the market consolidated after touching a one-month low on Monday, brokers said.
Weakness in the cash market for U.S. cattle has hung over futures prices recently, but some traders said they hope the markets will not go lower after this week.
Prices for choice cuts of boxed beef rose by $1.18, to $229.13/cwt, according to U.S. Department of Agriculture data (all figures US$). Prices for select cuts eased 97 cents, to $214.35.
Beef and cattle prices are often weak this time of year as demand weakens after the summer grilling season, analysts said.
“Once Labour Day comes and goes, the meats typically have a tough time of it,” a broker said.
Chicago Mercantile Exchange October live cattle futures ended up 0.175 cent at 105.475 cents/lb., after falling on Monday to the lowest price since July 28.
October feeder cattle rose 0.025 cent to 140.65 cents/lb.
In the pork market, CME October lean hogs jumped 1.425 cents to 55.025 cents/lb. The United States still has a glut of pork, analysts said, after farmers expanded herds in recent years.
Traders are watching demand from China, the world’s top pork consumer, because a deadly pig disease has devastated the country’s hog herd over the past two years.
China will auction frozen pork and beef from its state reserves in the coming days, the China Merchandise Reserve Management Centre said.
In other news, Argentina has delayed until November the signing of a memorandum of understanding with China aimed at increasing investment in Argentine hog output, a government source said on Tuesday.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.