CME update: cattle futures fall on unexpected supply boon

US live cattle future sank on 24 August as the market felt pressure from a USDA report showing that cattle supplies were bigger than expected.
calendar icon 25 August 2020
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Reuters reports that the US Department of Agriculture’s monthly Cattle on Feed report, released on Friday 21 August, showed July placements at 111 percent of the same period in 2019.

This was also above the average estimate in a Reuters analyst poll, which predicted that placements would be 105.9 percent of a year ago. The number of cattle on feed as of 1 August, at 11.284 million head, was 102 percent of 2019, above the average trade estimates of 100.7 percent.

CME benchmark October live cattle ended 0.625 cent lower at 107.925 cents per pound. October feeder cattle lost 2.45 cents to end at 142.825 cents per pound.

Feeder cattle futures bottomed out at their lowest since 29 July while live cattle touched the lowest since 12 August.

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Source: Reuters

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