U.S. livestock: Cattle slip on profit taking, technicals after weak beef export data

Chicago | Reuters—Chicago Mercantile Alternate cattle futures retreated on Thursday in a profit-taking and technical setback after three periods of beneficial properties and as disappointing weekly beef export gross sales knowledge weighed available on the market.

Futures, nevertheless, stay supported by tight provides of cattle and robust beef costs.

Lean hog futures adopted cattle contracts decrease, pressured by rising provides and a drop in pork export gross sales final week.

“Livestock contracts had been deep within the pink right now with the heaviest losses seen in cattle. Lengthy liquidation was the first reason for this as contracts have been holding at all-time highs in overbought territory,” Karl Setzer, associate with Consus Ag Consulting, stated in a word to purchasers.

U.S. grains: Soybeans retreat as demand worries overshadow USDA’s production cut

U.S. soybean futures declined for the first time in four sessions on profit taking on Thursday after a rally ignited by the U.S. government’s lower-than-expected harvest outlook took prices to six-week highs.

“Disappointing weekly pink meat export gross sales weighed on each cattle and hogs.”

The U.S. Division of Agriculture stated exporters offered a internet 4,282 metric tonnes of U.S. beef within the week ended August 7, down 73 per cent from every week earlier and a marketing-year low. Web U.S. pork export gross sales fell 32 per cent to 21,102 tonnes, the bottom in three weeks.

CME October dwell cattle futures LCV25 ended 2.600 cents decrease at 226.825 cents per pound, whereas September feeder cattle FCU25 tumbled 5.600 cents to 346.625 cents per pound. October lean hogs LHV25 fell 1.650 cents to 89.125 cents per pound.

Earlier than Thursday’s drop, cattle futures had been climbing towards current contract highs, helped by rising wholesale beef costs.

The selection boxed beef cutout worth added one other $3.30 on Thursday afternoon to $393.79 per hundredweight (cwt), up $14.95 within the week to this point, in keeping with the U.S. Division of Agriculture. The choose beef cutout was down $1.08 on Thursday at $366.88 per cwt after leaping by $12.87 over the earlier three days.

—Costs reported in U.S. {dollars}