U.S. livestock: CME cattle futures rise on expectations of tight supplies

Chicago | Reuters – Chicago Mercantile Change cattle futures climbed on Wednesday as market gamers anticipated tighter cattle provides within the first quarter of the brand new yr, and there was some technical shopping for, in keeping with analysts.

CME February stay cattle LCG26 settled 1.125 cents increased at 231.600 cents per pound, and March feeder cattle FCH26 settled 0.750 cent increased at 345.325 cents per pound.

“There’s a number of expectation that the money fed cattle market goes to rally at first of the yr, which it usually does seasonally,” mentioned Cassie Fish, analyst and writer of the Beef e-newsletter.

She added that there had been loads of fund shopping for not too long ago, in addition to some “modest power” within the money cattle market, permitting futures to shrug off bearish elements resembling customers dealing with file excessive beef costs.

The U.S. Division of Agriculture reported on Wednesday afternoon that boxed beef values fell $0.75 to $347.45 per hundredweight for alternative cuts and $0.78 to $342.38 per cwt for choose cuts.

Beef packers misplaced $271.40 per head of cattle on Wednesday, in keeping with livestock advertising advisory agency HedgersEdge.com, in comparison with $254.85 on Tuesday and $199.00 per week in the past.

CME benchmark February lean hog futures LHG26 fell 0.350 cent to 85.100 cents per pound after ticking up on Tuesday.

The USDA on Wednesday afternoon reported pork carcasses fell $0.39 to $93.84 per cwt and bellies rose $3.52 to $122.50 per cwt.

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