Chicago Mercantile Exchange (CME) cattle futures dipped sharply lower on Tuesday with the CME expanding trading limits for feeder cattle as they fell under pressure from a revision to jobs data showing weaker numbers, reported Reuters.
The US economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated, the government said on Tuesday.
Analysts said those numbers could finally shake consumer demand for beef at a time when that demand has been high despite rising beef prices.
"The revision to the employment numbers certainly got to trade's attention," said Rich Nelson, chief strategist with Allendale. "So we still have questions right now about the health of the US consumer and its ability to buy extremely high-priced retail beef."
CME October live cattle futures fell for a sixth straight session, ending 5.625 cents lower at 230.175 cents per pound. Feeder cattle also took a dive, with the October contract ending down 9.275 cents at 349.925 cents per pound.
The US Department of Agriculture (USDA) said the wholesale choice boxed beef value fell $2.02 per hundredweight on Tuesday afternoon to $409.67 per cwt. The select cutout rose $1.62 to $386.96 per cwt.
Beef packer margins were at $52.75 per head on Tuesday, down from $66.65 per head on Monday and $99.25 a week ago, according to livestock marketing advisory service HedgersEdge.
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