CME update: cattle futures inch higher

US live cattle futures closed higher on 29 July for a second straight session as cash cattle prices become stronger.
calendar icon 30 July 2020
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Reuters report that the rise in futures prices is also linked to a softer dollar.

Cash cattle traded in the Texas Panhandle and Kansas at $97 per cwt, mostly $1 higher than last week, the US Department of Agriculture said in a daily note.

A weaker dollar added support, making US meat more competitive in the global export market. The dollar index fell to a two-year low as the Federal Reserve affirmed its commitment to holding interest rates near zero.

Chicago Mercantile Exchange (CME) August live cattle futures settled up 0.550 cent at 101.450 cents per pound while the most-active October contract rose 1.050 cents to 106.050 cents a pound.

CME August feeder cattle futures ended up 1.275 cents at 141.975 cents per pound, and September feeder cattle rose 1.275 cents to 142.575 cents per pound.

Feeder cattle futures drew support from softening corn futures, which tend to make feedlots more profitable, bolstering demand for feeder cattle. Chicago Board of Trade December corn hit a one-month low on 29 July.

However, uncertainty about domestic demand for beef hung over the futures market, capping rallies, as traders considered whether the coronavirus pandemic would curb Labor Day celebrations or purchases by school lunch programmes.

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Source: Reuters

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