Live cattle futures on the Chicago Mercantile Exchange (CME) fell to their lowest levels since March on Wednesday, pressured by weak cash cattle prices, technical selling and declining wholesale beef prices, Reuters reported, citing analysts.
Cash cattle traded in Nebraska on a dressed basis on Tuesday at around $380 per hundredweight, down $10 to $13 from the prior week, traders and the US Department of Agriculture said.
"That certainly put more pressure on futures today, even though they (futures) are significantly over-sold," said Doug Houghton, analyst with Brock Capital Management.
CME August live cattle futures settled down 1.300 cents on Wednesday at 230.125 cents per pound, dropping below their 200-day moving average. October futures ended down 1.650 cents at 226.0 cents a pound after hitting 225.050 cents, the contract's lowest level since March 16.
CME feeder cattle futures closed mixed, with the August contract settling up 1.150 cents at 349.950 cents per pound.
The USDA priced choice cuts of beef on Wednesday afternoon at $371.28 per cwt, down $2.67 from Tuesday and the lowest reading since February 23.
Managed commodity funds hold a sizable net long position in live cattle futures, leaving the market prone to bouts of long liquidation.
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