Chicago Mercantile Exchange (CME) cattle futures turned higher on Tuesday on strong cash cattle prices and a continued tight supply of cattle, Reuters reported, citing analysts.
CME April live cattle futures settled 2.175 cents higher to 242.80 cents per pound. March feeder cattle ended 4.825 cents higher to 370.975 cents per pound.
Choice cuts of beef were priced at $366.91 per cwt, down 86 cents from Friday, according to US Department of Agriculture (USDA) data. Consumer demand for beef has remained strong, despite record-high beef prices.
The closure of the US-Mexico border to Mexican cattle imports due to the northward spread of screwworm has further constricted an already-tight cattle supply.
Cattle futures have remained at a discount to cash cattle prices, indicating that futures will continue to move higher, analysts said.
CME April hogs settled 1.025 cents higher to 92.3 cents per pound.
The market had risen through most of January on winter weather that complicated hog deliveries and worries about diseases reducing animal numbers. Managed funds expanded their net long position in lean hog futures throughout December and January.
The USDA priced pork carcasses on Tuesday afternoon at $95.42 per hundredweight (cwt), down $1.43 from Friday.
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