U.S. livestock: Live cattle futures climb as wholesale US beef prices firm

Chicago | Reuters—Chicago Mercantile Trade dwell cattle firmed on Wednesday as wholesale costs continued to rise and shopper demand for beef has stayed robust amid the U.S. grilling season, market analysts stated.

CME feeder cattle futures largely ticked decrease, with costs falling sharper earlier within the session as merchants responded to experiences of slower demand and decrease costs in some money markets.

In the meantime, the hog market eased on technical buying and selling and continued softness in wholesale pork stomach costs.

The close by CME lean hog June contract LHM25 settled down 0.500 cent to 99.525 cents per pound on Wednesday, whereas most lively July contract LHN25 closed down 1.025 cents to 102.525 cents per pound.

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CME August dwell cattle futures LCQ25 settled up 0.800 cent to 208.65 cents per pound — and earlier touched the best value since Could 14. And August feeder cattle futures FCQ25 settled down 1.075 cents at 296.425 cents per pound.

Even with tight stock, cattle feeders in some areas have been unwilling to pay elevated costs — and have as a substitute opted to not fill their feed heaps to capability, Karl Setzer, accomplice at Consus Ag Consulting, wrote in an analyst notice Wednesday afternoon.

“Producers within the South are passing on $220.00 packer bids after seeing gross sales at $230.00 within the North final week,” Setzer stated.

In Kansas, money cattle bought on Tuesday at $219 per hundredweight (cwt), down from final week, stated Wealthy Nelson, chief strategist at Allendale Inc.

However by Wednesday afternoon, money cattle costs once more turned greater, an indication that the market had but to hit a peak, Nelson stated.

Boxed beef costs additionally firmed Wednesday morning: Selection cuts of boxed beef rose 71-cents to $359.46 per cwt, whereas choose cuts rose $4.06 to $349.02 per cwt, U.S. Division of Agriculture knowledge confirmed.