Chicago Mercantile Exchange (CME) cattle futures rebounded on Thursday on strong cash cattle and beef prices and following a US Department of Agriculture denial that imports of feeder cattle from Mexico could resume the week of Jan. 20, Reuters reported.
CME March feeder cattle reached a life-of-contract high alongside most other contracts before settling up 3.325 cents at 268.300 cents per pound.
February live cattle futures ended up 3.900 cents at 197.600 cents per pound, reaching their highest since Sept. 29, 2023. Most other contracts hit lifetime highs.
Cash cattle prices rallied on Thursday, according to analysts as packers continued to struggle to purchase enough inventory, although processing margins remained in the red.
They lost an estimated $18.60 per head Thursday, compared with losses of $35.65 per head on Wednesday and losses of $22.45 a week ago, according to livestock marketing advisory service HedgersEdge.com.
Cattle also received support as the USDA denied a report on Wednesday that imports of feeder cattle from Mexico would partially resume the week of Jan. 20 after a closure prompted by an outbreak of the New World screwworm pest.
"The markets kind of saw an initial pull back yesterday and now we're seeing a push back higher," said Austin Schroeder, an analyst with Brugler Marketing and Management.
"I think there was a little overreaction yesterday," he said.
Boxed beef values were also higher, he noted, with the USDA reporting choice cuts of beef up $2.17 at $330.78 per hundredweight (cwt) and select cuts up $1.46 at $308.35 per cwt on Thursday afternoon.
Meanwhile lean hogs rose following a period of funds unraveling large net long positions.
CME February lean hogs settled up 2.300 cents at 81.775 cents per pound.
Hogs rose despite an upswing in pork values, with the USDA reporting that the pork carcass cutout value fell 5 cents on Thursday afternoon to $90.48 per cwt.
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