Chicago Mercantile Exchange (CME) cattle futures moved higher on Tuesday as demand for beef stayed strong and meat packers continued to have trouble finding enough cattle for slaughter, Reuters reported, citing market analysts.
CME February live cattle futures ended up 0.375 cent at 195.575 cents per pound, their highest since mid-October, and all other contracts reached lifetime highs during the session.
March feeder cattle settled up 2.375 cents at 267.925 cents per pound, reaching life of contract highs alongside most other contracts during the session.
Cattle futures continued this week's upswing with demand holding strong, inventory likely to stay low for the next few years and a snap of harsh winter weather in the cattle belt that could slow cattle weight gains, said Don Roose, president of US Commodities.
With demand driving costs higher, meat packers spent another day in the red on Tuesday, losing an estimated $20.00 per head, compared with losses of $20.60 per head on Monday and losses of $10.00 a week ago, according to livestock marketing advisory service HedgersEdge.com.
The US Department of Agriculture (USDA) reported that choice cuts of boxed beef on Tuesday afternoon fell $1.31 to $325.79 per hundredweight (cwt). Select cuts jumped $2.10 to $305.43 per cwt.
CME February lean hogs settled lower for an eighth straight session, losing 0.475 cent at 79.175 cents per pound, hitting their lowest trough since Oct. 3, 2024, at 78.825 cents per pound.
The inventory of pigs for slaughter operations is plentiful, said Roose, while pork demand is lower from the US and overseas, with US hog prices significantly higher than China's.
Click here to see more...