Chicago | Reuters — Chicago Mercantile Exchange live cattle futures slumped on Monday as profit-taking dragged prices down after the market set new contract highs, traders said.
CME June live cattle ended down 0.9 cent at 161.225 cents/lb., after reaching a high of 162.525 cents/lb. (all figures US$). That exceeded Friday’s high of 162.175 cents/lb.
Strong cash prices last week lifted futures before the setback, analysts said. Concerns about tightening U.S. cattle supplies and cold, snowy conditions hitting cattle in the northern U.S. Plains help support for futures, they said.
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U.S. livestock: Cattle futures come down from highs
Cattle futures on the Chicago Mercantile Exchange were weaker on Monday, coming down from recent highs.
CME feeder cattle futures also ended lower on profit-taking and as a rise in corn prices signaled potentially higher costs for animal feed, traders said.
CME May feeders ended down 2.1 cents at 203.15 cents/lb.
Meatpackers slaughtered an estimated 124,000 cattle on Monday, up from 121,000 cattle a year ago, and 485,000 hogs, up from 478,000 hogs a year ago, the U.S. Department of Agriculture (USDA) said.
Hog traders continued to digest producers’ lower-than-expected intentions for mother pigs to give birth to baby piglets this spring and summer, analysts said. The data, issued in an USDA repor Thursday, was seen as a bit bullish for deferred hog futures, they said.
Most-active CME June lean hog futures ended down 0.2 cent at 91.425 cents/lb., while July hogs rose 0.3 cent to 94.325 cents/lb.
Front-month April hogs remained under pressure. The contract ended down 0.725 cent at 74.525 cents/lb. and reached a contract low of 74.125 cents/lb.
USDA priced the pork carcass cutout at $78.32 per hundredweight (cwt), up $1.04 from Friday. Belly values climbed by $8.07, to $86.83/cwt, while ham values dropped $3.58, to $67.23 per cwt.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
