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Chicago Mercantile Exchange (CME) live cattle futures rose Monday, as a flurry of technical trading and strength in wholesale prices helped the contracts rebound from the lows of recent months, reports said. indicated the traders.
Feeder cattle futures were mostly lower, while lean hog futures firmed due to demand, traders said.
Last week, live cattle futures plunged to their lowest level since mid-January as concerns over beef demand and reports of bird flu in dairy cows triggered a sell-off in funds as the weekend approaches. U.S. authorities said Thursday that bird flu first infected a dairy herd in Ohio and was detected in other herds in Kansas and New Mexico.
Despite assurances from some government officials about the security of food supplies, technical selling accelerated the market’s fall on Friday, traders said.
The question facing futures traders and hedge funds right now is whether the public’s appetite for beef will cool down, just as the U.S. enters, according to independent cattle trader Dan Norcini. in grilling season.
But demand appears to remain firm: On Monday, the U.S. Department of Agriculture reported prices for prime boxed beef cuts were $301.75 per hundredweight, up $4.59 from Friday, while the selected cut was $301.48 per cwt., up $6.78.
“This has allayed market fears about stifling demand for beef among consumers and withdrawal of beef buyers,” Mr Norcini said.
Meanwhile, the USDA estimated that the cut-out value of pork carcasses rose Monday to its highest level since Sept. 19, 2023, reflecting strong demand and strength in the cash market, officials said. traders.
CME June live cattle settled up 1.275 cents at 173.325 cents per pound. The most active May feeder cattle futures settled down 1 cent at 237.175 cents per pound.
Actively traded June hogs hit a high of 108.35 cents per pound and settled 0.025 cents higher at 107.925 cents per pound. (Reporting by PJ Huffstutter; Editing by Alan Barona)
