Business

LIVESTOCK-CME live cattle business, drought boosts sales


By Christopher Walljasper

CHICAGO, August 17 (Reuters)Chicago Mercantile Exchange live cattle futures rose on Wednesday, supported by ranchers increasing placements of calves amid drought conditions across the southern plains of the United States, analysts said.

“Fall weaned calves are starting to come out,” said Austin Schroeder, commodity analyst at Brugler Marketing. “Investments have been pushed back, with the drought.”

Cash cattle prices have held steady this week, ranging from $148 per cwt (cwt) in the U.S. Northern Plains to $140 per cwt in the Southern Plains, the U.S. Department of Agriculture said. (USDA).

CME October VUL2 live cattle futures climbed 0.175 cents to 145.850 cents a pound. Almost every month a new contract length record has been reached.

September CME Feeder Cattle Futures Contract FCU2 climbed 1.775 cents to 187.125 cents per pound.

In its monthly livestock feed report on Friday, the USDA is expected to show almost unchanged feedlot numbers from a year ago, according to a Reuters survey of analysts, while marketing the livestock in July is expected to fall 2.9% year on year. earlier, with July placements down 1.5%.

Beef prices fell, with some cuts slashing $1.23 to $237.89 per quintal, while choice cuts lost $1.10 to $264.34 per quintal.

Lean hog futures prices rose, supported by unseasonably high spot prices.

The CME’s Lean Hog ​​Index (.IHX), a two-day weighted average of spot hog prices, fell 65 cents to $121.06 a hundredweight.

“It came off its peak, but it didn’t completely fall apart,” Schroeder said. “That probably gave some strength to the upcoming October.”

CME August October lean pigs LHV2 added 1.475 cents to 98.050 cents per pound.

Wholesale hog prices fell, with hog carcasses dropping from $2.68 to $118.47 per cwt, the USDA said.

(Reporting by Christopher Walljasper; Editing by Shailesh Kuber)

(([email protected]; 1 630 269 3072; Reuters Messaging: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

nasdaq

Back to top button