Chicago | Reuters — Chicago Mercantile Exchange cattle futures ended the day lower on Monday, as market participants sought to take profits after live cattle futures hit a nearly three-month high in the previous session, traders said.
Lean hog futures also turned lower on profit-taking, after a recent strong rally in the futures market faced fundamental resistance, traders said.
CME April live cattle futures LCJ24 settled down 1.40 cents at 182.350 cents per pound. March feeder cattle futures FCH24 ended down 2.050 cents at 242.750 cents per pound.
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Chicago Board of Trade corn futures extended slight gains on Tuesday as short covering and bargain buying continued to support a rebound from contract lows reached during the previous session.
CME hog futures ended mostly lower, with the benchmark April contract LHJ24 settling down 1.625 cents at 82.200 cents per pound.
The cash market started the week out relatively firm, with feeders in the Oklahoma and Kansas areas priced between steady from last week’s $178 per hundredweight (cwt) to $4 more per cwt, traders said.
The continued increase in prices is part of the ripple effect caused by frigid winter weather in mid-January that reduced cattle weights, analysts said.
Traders said funds and investors are trying to adjust their positions in the futures markets ahead of a flurry of government data reports slated to be released on Thursday, including the U.S. Department of Agriculture’s (USDA) monthly supply and demand report.
“People want to see what USDA puts the prices for hogs and cattle will be this year, and what the per-capita consumption rate will be for beef and pork,” said Don Roose, president of U.S. Commodities in West Des Moines, Iowa.
Wholesale beef prices were higher on Monday afternoon with choice cuts priced at $293.48 per cwt, up 40 cents, while select cuts rose 30 cents to $283.77 per cwt, according to USDA data.
