Chicago | Reuters—Chicago Mercantile Exchange cattle futures ended mixed on Wednesday as market players weighed waning demand from consumers and retailers while hog futures turned higher, following a seasonal pattern, traders said.
Near record-high beef prices may be depressing consumer demand, which typically declines after the upcoming U.S. Independence Day holiday.
CME August live cattle settled 0.575 cent lower at 208.975 cents per pound. August feeders finished the day up 0.05 cent at 302.30 cents per pound. The choice boxed beef cutout value rose 69 cents to $394.94 per cwt and select cuts dropped $6.12 to $376.29 per cwt.
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
Most retailers have already purchased the meat they need for the Fourth of July, a major grilling holiday.
“The retailers are certainly not stocking up for big demand,” Matthew Wiegand, broker at FuturesOne, said.
CME lean hog futures ended down, with actively traded August settling up 0.275 cents to 111.225 cents per pound.
Pork demand has remained strong, traders said, as high beef prices have encouraged consumers to turn to more budget-friendly pork.
Traders are also awaiting the U.S. Department of Agriculture’s quarterly Hogs and Pigs report, which will be released at 2 p.m. CT (1900 GMT) on Thursday.
They expect the report to show a smaller hog herd compared to the same period in the previous year.
