Chicago Mercantile Exchange (CME) cattle futures remained mostly stable on Friday, following a week of technical selloffs. Traders noted that pre-weekend positioning contributed to the market’s stability. Pressure on cattle futures has been exacerbated by a weak cash cattle market and ongoing economic uncertainty. However, beef buying ahead of the Labor Day holiday may provide some market support.
The U.S. Department of Agriculture (USDA) reported that cattle placements into feedlots increased by approximately 6% in July compared to the previous year, surpassing analysts’ expectations of a 3.2% rise. Low corn prices, which benefit feedlots, are contributing to profitability in cattle processing, as noted by Don Roose, president of US Commodities.
CME October feeder cattle futures saw a slight increase of 0.125 cent, closing at 234.375 cents per pound, while CME October live cattle futures fell by 0.2 cent to 175.700 cents per pound. The USDA also reported mixed results for boxed beef prices, with choice cuts rising and select cuts declining.
In contrast, hog futures have risen this week due to higher prices in China, the world’s leading pork consumer, and a weaker dollar, which has made U.S. pork exports more competitive. CME October lean hog futures increased by 0.925 cent to 80.55 cents per pound. Additionally, USDA data revealed a 4% decrease in U.S. frozen pork supplies at the end of July compared to the previous year, with frozen pork bellies down 17%.
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