Cattle futures dip, pork exports surge - U.S. Livestock market update

Jun 03, 2024

By Farms.com

In recent trading sessions, Chicago Mercantile Exchange (CME) cattle futures saw a decline, extending for the third consecutive session. Concerns over future beef demand weighed on prices, with technical trading pushing the most-active August live cattle contract to a two-week low.

The downturn in cattle prices was also attributed to shifts by hedge funds, who adjusted their positions ahead of the summer months, leading to profit-taking at month's end. Additionally, the increased weight of slaughter-ready animals compared to last year added pressure on futures prices.

As boxed beef cutout prices decreased, market participants questioned the potential summer demand for U.S. beef. The choice boxed beef cutout value eased down to $313.20 per hundredweight, reflecting broader concerns about market stability and peak pricing.

Conversely, lean hog futures experienced an uptick driven by a surge in weekly U.S. pork exports. Traders noted discussions in the market regarding overselling of hog futures and observed stability in pork cutout prices.

The most-active CME July hog futures ended higher, while August live cattle futures closed lower. June live cattle and August feeder cattle futures also settled down, marking mixed performance across livestock segments.

These developments underscore the dynamic nature of the U.S. livestock market, influenced by factors such as demand fluctuations, trade dynamics, and investor sentiment.

Market participants continue to monitor these trends closely to navigate market uncertainties and capitalize on emerging opportunities.

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