Chicago Mercantile Exchange (CME) feeder cattle futures were sharply higher on Monday as corn futures on the Chicago Board of Trade took a dive, Reuters reported, citing Don Roose, president of US Commodities.
Most active Chicago corn fell alongside soybean and wheat futures, as US President Donald Trump said in an interview with the Financial Times published on Sunday that he could delay a summit with China’s President Xi Jinping later this month as he presses Beijing to help unblock the Strait of Hormuz.
Lower corn prices can signal cheaper animal feed, supporting feeder cattle.
Meanwhile, the anticipation of Friday's Cattle on Feed report from the US Department of Agriculture added support as the report is expected to show continuing tight cattle supplies, said Roose.
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 have gone on strike.
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