CME update: cattle futures dip to one-month low
US live cattle futures dropped to their lowest price in more than a month on 12 June.
15 June 2020
1 minute read
Reuters reports that the commodities are weighed down by expectations of increased meat production in the coming weeks.
Beef output in the US has improved as slaughterhouses continue to resume operations after temporary closures due to COVID-19 outbreaks.
In the USDA monthly report, issued on Thursday 11 June, beef production estimates for 2020 rose by 3.5 percent from May to about 26.74 billion pounds.
"I'm looking for downward pressure in the cattle," said Dennis Smith, commodity broker for Archer Financial Services in Chicago.
The USDA estimated on Friday that meat processors slaughtered 582,000 cattle last week, up from 573,000 over the same period from 1-6 June. The total is lower than 2019 number from the same period, when the USDA calculated some 606,000 cattle slaughtered.
Boxed beef prices still eased as production recovered, with choice cuts dropping by $5.60 to 229.96 per cwt, according to the USDA.
"The beef is still working downwards," Smith said.
Chicago Mercantile Exchange August live cattle slid 1.125 cents to 95.325 cents and reached its lowest price since May 6. August feeder cattle futures ended 1.075 cents weaker at 131.100 cents per pound.
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