Chicago | Reuters — Chicago Mercantile Exchange live and feeder cattle futures retreated on Wednesday in a technical selling and profit-taking setback after hitting highs earlier in the week, traders said.
Higher feed corn prices and a weak tone to the cash beef market added pressure, they said.
“This is technical after feeder cattle hit a contract high yesterday and (live cattle were) trading near its contract high,” said Terry Reilly, senior agricultural strategist with Marex.
“Higher corn prices are likely adding to the negative undertone,” he added.
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CME October live cattle futures ended down one cent at 183.15 cents/lb. after coming within a penny of its contract high on Monday (all figures US$). December live cattle settled 0.6 cent lower at 187.85 cents.
October feeder cattle ended down 2.2 cents at 259.05 cents/lb. after hitting a life-of-contract high a day earlier.
Wholesale beef prices have seasonally weakened this month.
On Wednesday, the choice boxed beef cutout was down 48 cents at $307.55/cwt, its lowest since Aug. 15, according to U.S. Department of Agriculture (USDA) data. Select cuts bounced from a one-month low on Tuesday to $387.19/cwt, up $3.41.
CME lean hog futures were mostly lower, with actively traded nearby contracts pressured by technical selling and profit taking after recent peaks.
October lean hogs ended the day down 1.3 cents at 83.875 cents/lb. Actively traded December lean hogs touched a 1-1/2-month high of 77.475 cents during the session, but settled down 0.55 cent at 76.35 cents/lb.
— Karl Plume reports on agriculture and ag commodities for Reuters from Chicago.
