Chicago Mercantile Exchange (CME) live cattle firmed on Wednesday as wholesale prices continued to rise and consumer demand for beef has stayed strong amid the US grilling season, Reuters reported, citing market analysts.
CME feeder cattle futures mostly ticked lower, with prices falling sharper earlier in the session as traders responded to reports of slower demand and lower prices in some cash markets.
Meanwhile, the hog market eased on technical trading and continued softness in wholesale pork belly prices.
The nearby CME lean hog June contract settled down 0.500 cent to 99.525 cents per pound on Wednesday, while most active July contract closed down 1.025 cents to 102.525 cents per pound.
CME August live cattle futures settled up 0.800 cent to 208.65 cents per pound — and earlier touched the highest price since May 14. And August feeder cattle futures settled down 1.075 cents at 296.425 cents per pound.
Even with tight inventory, cattle feeders in some areas have been unwilling to pay elevated prices — and have instead opted not to fill their feed lots to capacity, Karl Setzer, partner at Consus Ag Consulting, wrote in an analyst note Wednesday afternoon.
"Producers in the South are passing on $220.00 packer bids after seeing sales at $230.00 in the North last week," Setzer said.
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