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CME update: cattle futures rise again as demand remains strong

11 May 2021

US live cattle futures gained on 10 May as cattle processing picked up, led by strong beef prices.

Reuters reports that feed cattle gained on tight supplies and a lower corn trade.

CME June live cattle futures added 2.200 cents to 118.225 cents per pound, while August feeder cattle futures finished 4.425 cents higher at 144.275 cents per pound.

Daily cattle slaughter climbed to 119,000 head processed on Monday, up 5,000 from a week earlier.
"We showed improvement on packer runs to start the week," said Matthew Wiegand, Risk Management Consultant at FuturesOne. "We’ll need to continue that all week."

Beef packers have been enjoying strong margins lead by strong consumer demand.

Prices for select cuts of beef shipped to wholesalers added $3.49 to $293.76 per cwt, according to the US Department of Agriculture, while choice cuts gained $3.23 to $309.11 per cwt.

Packer profits climbed to $737.10 per head, up from $659.65 a week earlier, according to livestock marketing advisory service HedgersEdge.com.

Feeder cattle gained from a dip in the corn market, after the feed grain climbed to new eight-year highs last week.

Read more about this story here.

Source: Reuters



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