U.S. livestock: Cattle futures end lower in profit-taking, technical correction

Chicago | Reuters—Chicago Mercantile Alternate cattle futures declined for a second straight session on Wednesday in a profit-taking and technical-selling correction from latest highs.

Elevated beef values have supported cattle futures for months, and merchants now are assessing whether or not excessive costs might start weighing on beef demand on the finish of the summer season outside grilling season.

Losses, nevertheless, had been restricted as money cattle costs remained at a premium to futures, analysts mentioned.

“It’s a cash-led bull market. Right now of yr in October, cattle must be even on a foundation with the money,” mentioned Don Roose, president of U.S. Commodities.

U.S. grains: Corn slips from six-week high, soybeans down on China demand worries

U.S. corn futures fell from a six-week peak on Wednesday on profit-taking and technical selling after three sessions of gains as an expected record-large U.S. harvest weighed on the market.

CME October reside cattle futures LCV25 ended 1.200 cents decrease at 238.325 cents per pound, widening their low cost to the $242 per hundredweight that packers paid for cattle at feedlot markets final week.

Packer bids at midweek this week urged money cattle costs could possibly be a minimum of regular with final week.

Beef packer margins remained within the black regardless of tight cattle provides and agency cattle costs as beef values hovered close to multi-year highs.

The U.S. Division of Agriculture mentioned the selection boxed beef cutout worth rebounded on Wednesday from the prior-day’s decline, rising $2.59 to $416.01 per cwt, the very best since Could 2020. The choose cutout gained $1.56 to $387.73 per cwt.

The typical beef packer margin on Wednesday slipped to $86.20 per head, down from $99.25 a day earlier however up from $82.55 per head final week, based on livestock advertising advisory service HedgersEdge.

Feeder cattle futures adopted reside cattle decrease, with the October contract FCV25 ending the day down 2.200 cents at 361.500 cents per pound.

CME lean hog futures dropped on Wednesday after seven straight periods of good points that took costs to the very best in 10 weeks.

Spillover strain from decrease cattle futures and expectations for seasonally rising hog provides into the fourth quarter weighed in the marketplace, analysts mentioned.

CME October lean hogs LHV25 ended 1.725 cents decrease at 93.825 cents per pound.