Chicago Mercantile Exchange (CME) livestock futures turned lower on Monday, as cattle futures fell on signs of profit taking, a steady cattle cash market and uncertainty about consumer demand for beef this fall, Reuters reported, citing market analysts.
CME feeder cattle futures saw some support early in the session when Chicago Board of Trade corn futures dropped sharply, traders said. But as corn futures recovered, concerns of rising feed costs at a time when packers' profit margins have been firmly in the red weighed on contracts, they said.
Wholesale beef prices were mixed Monday morning, with the US Department of Agriculture reporting that boxed beef cutout prices for choice was down 2 cents at $313.75 per hundredweight (cwt) and select cutout up $2.61 at $300.07 per cwt.
Hog futures eased, even though wholesale US pork prices were mostly higher early in the day. But pork cutout prices for ham turned sharply lower, according to USDA data, which added pressure to futures.
"The seasonal trends on hogs are all negative right now," said Don Roose, president of US Commodities. "The fall contracts are under pressure as pork supplies are growing with hog weights and the production pace being higher than a year ago."
Pork processors slaughtered 482,000 hogs on Monday, higher than the 453,000 head a week ago and above the 477,242 animals processed the same time a year earlier, according to USDA data.
CME August live cattle futures ended down 1.600 cents at 186.975 cents per pound, while most-active October live cattle futures fell 1.750 cents at 186.800 cents per pound.
CME August feeders ended 3.275 cents lower at 256.425 cents per pound.
CME August lean hog futures ended 2.025 cents lower at 91.450 cents per pound, and in mid-session dipped to the lowest price since July 16. October lean hog futures ended down 3.375 cents at 74.825 cents per pound.
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