Chicago Mercantile Exchange (CME) live cattle futures eased on Friday as anxiety over rising crude oil prices and broader economic concerns more than offset support from tight cattle supplies and improving beef packer margins, reported Reuters.
Feeder cattle were mixed as support from tight supplies was countered by pressure from lower live cattle and higher feed corn costs.
Beef packers have scaled back production in recent weeks and traders are monitoring developments at a large JBS meatpacking plant in Greeley, Colorado, where workers are due to go on strike beginning on Monday.
Reduced production has limited demand for cattle, but also lifted beef prices and bolstered packer margins that have been mired in red ink for months.
Cattle futures chopped around in a narrow range this week as traders weighed how consumers would respond to costlier beef amid other economic pressures such as soaring gasoline prices.
"There's a lot of potential negative things in an otherwise long-term bullish story. We are just kind of hanging on near a very key pivot level around the 100-day moving average in both April fats and feeders, sort of waiting to see how this plays out," said Ted Seifried, chief market strategist at Zaner Group.
CME April live cattle settled 0.350 cent lower at 230.900 cents per pound, just above technical chart support at its 200-day moving average and below overhead resistance at its 100-day moving average. April feeders finished up 0.100 cent at 343.100 cents per pound.
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