Chicago | Reuters — Chicago Mercantile Exchange live cattle futures fell Thursday for a second straight session, pressured by technical selling and expectations of ample U.S. summertime supplies of cattle and beef, traders said.
“We’re still just in the middle of June, and we know we have a big supply coming in,” said Scott Varilek, a broker at Kooima and Kaemingk Commodities.
Additional pressure on live cattle futures stemmed from a one per cent decline in CME feeder cattle, which fell in response to rising costs for corn, the primary feed grain for cattle.
Chicago Board of Trade corn futures neared a four-year high on worries about U.S. crop prospects after widespread planting delays this spring.
At the Chicago Mercantile Exchange, most actively traded August live cattle settled down 0.475 cent at 104.725 cents/lb. (all figures US$).
CME August feeder cattle ended down 1.575 cents at 136.225 cents/lb.
CME lean hog futures closed mixed. July lean hogs ended down one cent at 83.375 cents/lb., while August hogs rose 0.3 cent at 82.825 cents/lb.
The U.S. Department of Agriculture reported export sales of U.S. 2019 pork in the week to June 6 at 23,100 tonnes, including 2,400 tonnes to China. Weekly export sales of 2019 U.S. beef totaled 16,400 tonnes.
— Reporting for Reuters by Julie Ingwersen in Chicago.