Chicago Mercantile Exchange (CME) cattle futures continued to rise on Thursday, with feeder cattle finishing higher for the sixth straight session, on strength in the cash market and expectations of strong grilling season demand, Reuters reported, citing market analysts.
Meanwhile, CME lean hog futures eased on a spate of inter-commodity spread trading, as investors unwound their short-cattle and long-hog positions, analysts said. Still, prices continue to carry a premium into the summer months on anticipation of demand, they said.
Several live and feeder cattle futures contracts set new life-of-contract highs on the last trading day before the Easter holiday weekend - including the most-active June live cattle contract.
Weakness in Chicago Board of Trade corn futures also gave feeder cattle a boost during the trading session, traders said. Lower corn prices can signal cheaper animal feed, supporting feeder cattle.
But much of the trade's focus was on how high cash cattle prices might go next week, given reports that beef packers in the western parts of the Midwest were stocking up on animals ahead of the Easter holiday weekend, market analysts said.
"There were a lot of cattle in the west that sold this week up $3.00" per hundredweight at cash auctions, said Don Roose, president of Iowa-based US Commodities. "The optimism is that the consumer demand is going to stay strong, even as people are hoping that energy prices do come down soon."
Wholesale beef prices continued to turn lower. The US Department of Agriculture reported on Thursday afternoon that choice cuts of boxed beef fell $4.84 to $389.58 per hundredweight (cwt), and select cuts fell $4.89 to $387.70 per cwt.
CME June live cattle settled 1.975 cents higher at 246.325 cents per pound. Earlier in the session, June futures hit a fresh life-of-contract high of 246.575 cents per pound. CME May feeders settled up 2.625 cents at 370.625 cents per pound.
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