Chicago | Reuters—Chicago Mercantile Exchange cattle futures pulled back from the previous week’s rally on Monday as traders positioned ahead of Friday’s U.S. Department of Agriculture Cattle on Feed report, analysts said.
Meanwhile, boxed beef prices remained strong amid enduring consumer demand, solid economic outlook and the beginnings of wholesaler buying ahead of Thanksgiving and Christmas.
“Don’t make too much out of this. We had a nice rally for a bit, and the market has settled down,” Altin Kalo, economist at Steiner Group, said.
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Cattle futures on the Chicago Mercantile Exchange were mixed on Thursday, with fresh contract highs in the feeder cattle market while live cattle ran into resistance at their own highs to settle with small losses.
“Nobody knows what the cash trade is going to look like for the week, and they’re pulling back until we get direction for where the trade is going to develop,” he said.
Tight herd supplies and steady to higher prices in the cash markets have also continued to support futures, analysts said.
Strength in wholesale prices gave futures a boost, too. The choice boxed beef cutout rose $2.21 to $322.86 per hundredweight, according to the U.S. Department of Agriculture on Monday afternoon. Select boxed beef prices gained $2.01 to $296.21 per cwt.
CME December live cattle LCZ24 ended down 0.50 cent at 186.825 cents per pound, while November feeder cattle futures FCX24 settled down 1 cent at 246.60 cents per pound.
Hog futures rose on strength from wholesale pork prices and an uptick in buying from end users, analysts said. Pork cutout values increased across the board following a weeks-long pattern of firming wholesale prices.
CME December lean hog futures LHZ24 rose 0.45 cent to finish at 78.275 cents per pound.
Traders said they also remain positioned ahead of November’s presidential election and Federal Reserve meeting.
