TheDairySite.com - news, features, articles and disease information for the dairy industry

News

CME update: live cattle futures dip ahead of Cattle on Feed report

24 August 2020

US live cattle futures fell on 21 August on profit-taking and positioning ahead of the USDA’a Cattle on Feed report.

Reuters reports that the report was released after the markets closed on Friday 21 August.

CME benchmark October live cattle settled down 1.225 cents to end at 108.550 cents per pound. October feeder cattle lost 1.100 cents to end at 145.275 cents per pound.

For the week, October live and feeder cattle traded 1.5 percent lower.

"We've seen live cattle back off a little in the last couple days, but we're really just pulling back in what has otherwise been a strong uptrend in the last couple weeks," said Dan Hussey, senior market strategist at Zaner Group.

Strong wholesale beef prices underpinned the market. Choice cuts gained 61 cents at midday to $225.99 per cwt, while select cuts climbed $2.92 to $209.23.

After the close, the USDA's monthly Cattle on Feed report showed July placements at 111 percent of a year ago, above the average estimate in a Reuters analyst poll of 105.9 percent. The number of cattle on feed as of 1 August at 11.284 million head, was 102 percent of the year prior, above the average trade estimate of 100.7 percent.

"We could see a down move on Monday," said Brian Hoops, senior market analyst at Midwest Market Solutions.

Read more about this story here.

Source: Reuters



Partners


Seasonal Picks

Animal Welfare Science, Husbandry and Ethics: The Evolving Story of Our Relationship with Farm Animals