Chicago | Reuters – Chicago Mercantile Exchange live cattle futures rose to their highest in more than three months on Wednesday, supported by concerns that supplies of higher end cuts of meat will tighten in the coming weeks, traders said.
CME August live cattle futures LCQ2 settled 1.325 cents higher at 137.9 cents per lb and most-active October LCV2 ended 1.825 cents higher at 143.9 cents. The front-month contract hit its highest since April 29.
October live cattle broke through the high end of its 20-day Bollinger range during the session but failed to hold support above that key technical point.
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September feeder cattle futures FCU2 rose 1.45 cents to finish at 182.9 cents per lb.
In the U.S. wholesale beef market, choice cuts fell 52 cents to $267.94 per hundredweight (cwt), according to the U.S. Department of Agriculture. Select cuts lost 25 cents to $241.30 per cwt.
CME hog futures were mixed, with the nearby August contract rising to its highest since June 2021 while deferred offerings were weaker.
August lean hog futures LHQ2 gained 1.15 cent at 121.00 cents per lb and the most-active October contract LHV2 fell 0.375 cent at 95.85 cents.
The USDA reported the pork carcass value at $125.49 per cwt on Wednesday afternoon, a drop of $5.53 from Tuesday.
