Chicago | Reuters—Chicago Mercantile Exchange (CME) cattle futures rose on Wednesday on technical buying and increasing beef demand ahead of the upcoming U.S. Labor Day holiday, analysts said.
Technical buying also drove an uptick in lean hog futures, according to analysts.
CME most-active October live cattle LCV24 closed up 1.375 cents at 182.125 cents per pound, after breaking through technical resistance at its 100- and 200-day moving averages. Most-active October feeder cattle FCV24 finished 2.175 cents higher at 242.100 cents per pound.
“Yesterday the technicals improved on the cattle,” said Don Roose, president of U.S. Commodities. Futures had been too low in comparison to cash market prices, he said, and the market is seeing the beginning of Labor Day demand.
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The U.S. holiday, celebrated on Sept. 2 in 2024, is traditionally a major grilling holiday.
CME lean hog futures also rose on technical buying, said Roose.
CME October lean hog futures LHV24 ended up 3.075 cents at 75.925 cents per pound, after hitting a one-month low on Tuesday. The benchmark contract broke through technical chart resistance at its 20- and 50-day moving averages and touched its highest point in a week.
Traders have rolled positions out of the August live hog contract LHQ24 as it nears expiration.
