CME update: cattle futures sag as demand looks uncertain
US live cattle futures fell on Friday 2 October, taking a que from falling global financial markets after President Donald Trump tested positive for COVID-19.
5 October 2020
1 minute read
Reuters reports that President Trump’s disease status fuelled investor uncertainty, leading to a sag in the day’s trading.
Disappointing US job growth numbers heightened worries about consumer demand for beef, at a time when retailers are starting to stock meat cases for the end-year holidays. US non-farm payrolls increased by 661,000 jobs last month, below consensus expectations of 850,000.
"I think a lot of today was nervousness over the economy and COVID," said Doug Houghton, analyst at Brock Capital Management, referring to declines in cattle futures.
CME October live cattle settled down 0.350 cent at 108.175 cents per pound and most-active December ended down 0.725 cent at 111.100 cents.
However, cattle futures had underlying support from firm cash markets. Fat cattle traded in the US Plains this week at $107 per cwt, up about $2 from last week.
Feeder cattle futures fell for a third straight session on rising prices for corn, the main cattle feed grain, after the US Department of Agriculture on Wednesday 30 September reported tighter-than-expected 1 September corn supplies.
CME November feeder cattle ended Friday 2 October down 1.375 cents at 139.875 cents per pound.
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Source: Reuters
