US live cattle futures fell for a sixth straight session on Wednesday in a technical-selling and profit-taking retreat from recent highs, and as high beef prices stoked concerns about demand amid rising consumer costs, Reuters reported, citing analysts.
Beef sales would typically rise during warmer weather, which sparks more outdoor grilling, and as school graduations and holidays like Mother's Day boost restaurant traffic. However, competition from cheaper proteins like pork and chicken can diminish demand for higher-priced beef.
But losses in futures were limited on Wednesday by improving packer margins as traders awaited weekly cash market sales at Plains feedlots and updates on beef sales, they said.
"Cattle are kind of settling into a little bit of a pocket here until we get further direction from cash and nearby consumer demand," said Matthew Wiegand, a broker with FuturesOne.
"Your weekly consumer budget for all the line items went up and people are making decisions. It's wildly cheap, but there's more pork and chicken around," he said.
CME June live cattle futures touched their lowest level since March 31 and ended down 0.475 cent at 243.075 cents per pound. May feeder cattle reached their lowest level since March 27 and settled down 0.125 cent at 358.425 cents per pound.
Managed funds have built on a sizable net long position in cattle in recent weeks, pushing prices to near historic highs. However, that has left the market vulnerable to profit-taking corrections.
Cash cattle trading remained slow, but early-week packer bids suggest prices could fall by $1 to $2 per hundredweight this week.
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