All Chicago Mercantile Exchange (CME) feeder cattle futures and most live cattle futures hit contract highs on Friday on tight supplies linked to the US suspension of Mexican imports due to the spread of screwworm south of the border, reported Reuters.
Live cattle followed feeders higher, posting new contract highs in deferred contract months, although gains were limited by weaker cash beef prices and poor packer margins.
The wholesale choice boxed beef cutout turned higher on Friday afternoon, rising by 35 cents to $365.57 per hundredweight, according to US Department of Agriculture data. The select cutout rose $2.06 to $346.39 per cwt.
"The question is will consumers keep buying beef at these levels. It's the same story, but prices are higher today than it was a year ago, and higher than it was six months ago," said Don Roose, president of US Commodities.
CME December live cattle rose 2.625 cents to end at 242.525 cents per pound. Benchmark CME November feeder cattle settled 1.85 cents higher at 374.05 cents per pound.
Beef export concerns also restrained gains in live cattle following data showing record Brazilian beef shipments to China, the fourth-largest importer of US beef last year. China has halted most US agricultural imports amid trade tensions with Washington.
Click here to see more...