U.S. livestock: Cattle futures set record highs on scarce supplies

Chicago | Reuters—Chicago Mercantile Alternate dwell cattle and feeder cattle futures set document highs on Wednesday as money costs stayed robust, together with customers’ demand for beef, brokers mentioned.

Costs for cattle and beef have soared after ranchers slashed their herds to the bottom degree in a long time on account of a savage drought that dried up pastures used for grazing.

Beef provides had been anticipated to tighten additional after U.S. President Donald Trump slapped a 50 per cent tariff on most Brazilian items, together with beef, analysts mentioned. The USA has more and more relied on imports of Brazilian lean beef, used to make hamburgers, on account of low home inventories.

U.S. grains: Soybean futures extend losses on favorable US weather, weak demand

Chicago Board of Trade soybean futures fell for the fourth consecutive session on Wednesday, dragged down by favourable weather across the U.S. Midwest and sluggish export demand, analysts said.

U.S. beef processors continued to pay steep costs for cattle within the money market, brokers mentioned, including that futures remained too low in comparison with money costs.

August dwell cattle futures LCQ25 settled up 3.350 cents at 233.075 cents per pound after posting a contract excessive of 233.750 cents. That was the highest-ever value on a steady chart LCc1 of the entrance cattle futures contract.

Most-active October dwell cattle LCV25 ended up 3.275 cents at 229.725 cents after reaching a contract excessive of 230.425 cents.

The rallies had been the newest in a string of current highs.

“Momentum is up,” mentioned Matt Wiegand, commodity dealer for FuturesOne. “It’s fairly wildly overbought.”

CME September feeder cattle futures FCU25 ended up 2.675 cents at 339.750 cents per pound after reaching 340.600 cents. Entrance-month August feeders FCQ25 set the highest-ever value on a steady chart FCc1 of the close by futures contract.

The U.S. Division of Agriculture on Friday confirmed the U.S. cattle herd dropped to 94.2 million head by July 1, a document low for that date, whereas the variety of cattle positioned in U.S. feedlots throughout June fell by eight per cent in comparison with a 12 months earlier, a bigger-than-expected drop.

Wholesale beef costs eased on Wednesday, with selection cuts sliding $2.20 to $361.99 per hundredweight (cwt), in response to the USDA.

The company priced the hog carcass cutout at $116 per cwt, up barely from Tuesday.

CME August lean hog futures LHQ25 settled down 0.225 cent at 107.025 cents per pound, whereas most-active October hogs LHV25 ended up 0.475 cent at 89.2 cents per pound.

—Costs in USD