Chicago Mercantile Exchange (CME) live and feeder cattle futures were mixed on Tuesday on support from strengthening boxed beef prices amid quiet cash trade, Reuters reported, citing analysts.
CME April live cattle futures closed 1.025 cents higher to 234.125 cents per pound. April feeder cattle fell 0.025 cent to settle at 353.30 cents per pound.
Cash cattle prices traded lower last week, which helped shore up beef packer margins, though they still remain deeply in the red.
The average beef packer margin was estimated at a negative $183.70 per head, compared with a negative $334.90 per head a week ago, according to livestock marketing advisory service HedgersEdge.
The US cattle herd has lingered near a 75-year low, and the closure of the US-Mexico border to Mexican cattle imports has constricted the already-tight cattle supply.
A looming strike at a large beef plant in Greeley, Colorado, hung over the market, as a loss of production would dent demand for fed cattle and further weaken cash markets.
For boxed beef, the US Department of Agriculture reported that values for choice cuts rose by $6.71 to $388.05 per hundredweight, while select cuts increased by 37 cents to $378.58 per hundredweight.
Beef prices may come under seasonal pressure as warm weather and grilling season likely remain months away.
Lean hog futures ended slightly higher on technical buying.
CME April hogs closed 0.175 cent higher to 95.75 cents per pound.
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