CME update: cattle futures sink as profit-taking and technical selling pressure prices
US live cattle futures eased on 24 April as end-of-week sales and profit taking pressure livestock markets.
27 April 2020
1 minute read
According to Reuters, CME June live cattle fell 0.3 cent to 82.625 cents per pound. The contract firmed early in the session but turned lower after hitting resistance at its five-day moving average.
August feeder cattle futures rose 0.25 cent to 126.4 cents per pound.
After the close, the USDA said that the amount of cattle in US feedlots as of 1 April was 95 percent of the year-earlier total, matching market forecasts.
The amount of cattle marketed during March was 113 percent of the March 2019 total, topping market estimates for 111.8 percent. But monthly placements were 23 percent lower than March 2019. Analysts had been expecting placements to fall 21 percent.
The monthly report reflects a bullish market, reflecting good demand even though the supply chain is strained due to the coronavirus pandemic, said Josh Steinhilber, a broker at Cattlehedging.com.
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