Chicago Mercantile Exchange (CME) live and feeder cattle futures turned higher on Thursday as a sharp decline in grains and a stronger cash market supported cattle futures, reported Reuters.
Cattle had been oversold in recent weeks, traders said, and short covering also helped drive cattle higher on Thursday.
CME October live cattle settled 4.125 cents higher at 214.30 cents per pound. CME October feeder cattle futures rose 6.725 cents to 321.10 cents per pound.
A Wall Street rally added more bullishness to cattle. Wall Street advanced on Thursday as investors curbed their rate hike bets after US Federal Reserve Governor Christopher Waller said he would support holding the Fed funds target rate steady if data shows inflationary pressures are easing.
However, a slew of bearish news, including expectations of an increase in ground beef imports and the easing screwworm threat in Texas and New Mexico kept a lid on prices.
US President Donald Trump said he will temporarily ease beef tariffs to help lower prices and said ground beef imports would sell 25% below current prices, a move that triggered widespread condemnation from the US cattle industry.
Tyson Foods on Thursday cut its annual profit forecast for a second time within a month as tight US cattle supplies, volatile prices and cautious consumer spending put further strain on its struggling beef business.
Meatpackers have been bleeding money in their beef units as high costs for scarce cattle have outpaced benefits from record-high beef prices. Tyson eliminated thousands of meatpacking workers this year through plant closures intended to improve results, but said its beef business faced additional pressures in the quarter that ends in September.
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