US cattle futures rally over supply worries - CME
Hog futures ended weaker
9 June 2022
2 minute read
Chicago Mercantile Exchange (CME) cattle futures rallied on Wednesday, supported by technical buying and signs of tightening supplies in the cash market, reported Reuters, citing traders.
On a continuous basis, the front-month fed cattle contract hit its highest since November 2015. Live cattle hit a six-week high.
Hog futures ended weaker, giving up early gains after running into technical resistance.
US beef processors on Wednesday slaughtered an estimated 126,000 cattle, in line with Tuesday's total and up from 121,000 a year ago, the U.S. Department of Agriculture said. Hog slaughter was reported at 477,000 compared to 484,000 last year.
CME June live cattle rose 3.1 cents to settle at 136.825 cents.
The most-active August live cattle gained 3.4 cents to 137.525 cents, rallying through it 40-day, 50-day, 100-day and 200-day moving averages. It also broke through the high end of its 20-day Bollinger range for the first time since 22 April.
CME August feeder cattle gained 3.2 cents to 175.65 cents per pound.
Most-active July lean hog futures dropped by 1.325 cents to 107.95 cents per pound. The contract hit resistance at its 40-day moving average.
Prices for choice cuts of boxed beef were reported at $272.39 per 100 lbs on Tuesday afternoon, up 97 cents from Tuesday afternoon, while select cuts gained 45 cents to $250.01 per 100 lbs.
Carcass values in the U.S. pork cutout rose by 50 cents to $108.33 per 100 lbs, while belly values dropped $11.41 to $154.17 per 100 lbs, the USDA said.
Source: Reuters
