U.S. Cattle Futures Settle Mixed As Cash Trade Unfolds
Declining cash cattle prices reported throughout the day.
U.S. Cattle Futures Settle Mixed As Cash Trade Unfolds
The cattle market this week has been tethered closely to activity in corn futures, which, in turn, have been jolted by changing forecasts for rainfall during a key period of development for the U.S. crop. Worries about the strength of demand for high-priced steaks and other meat items and technical selling also weighed on the market, as prices flirted with lows last brushed in the summertime last year.
Short-covering gave some contracts a boost Friday, offset in others by declining cash cattle prices reported throughout the day. Around 4,000 head in Kansas and an estimated 15,000 in Nebraska have been sold so far Friday at mostly $1.48 a pound live, down two cents in the southern Plains States and three cents below last week's sales in Nebraska. Sales on a dressed basis--a form of marketing that accounts for meat yielded from the carcass--were reported at $2.36 a pound, four cents below the previous prices paid.
"The market is anticipating a seasonal bottom, right or wrong," said Trey Warnock, an analyst with Amarillo Brokerage in Texas, after which prices normally "work their way up, gaining momentum into the fall."
Hog futures, meanwhile, eased on profit-taking after most contracts advanced this week. August hog futures shed 0.325 cent to 75.25 cents a pound, up 2.7% from that contract's closing price last week. Hogs for October fell 1.075 cent to 63.45 cents a pound.
CHICAGO--U.S. cattle futures reversed a week-long slump Friday, ending the session mixed amid short-covering after futures earlier brushed the lowest levels in one year.
August live-cattle futures picked up 0.15 cent, or 0.1%, to $1.4665 a pound at the Chicago Mercantile Exchange, after sliding to the lowest intraday price since June 2014 at the start of the trading session, and marking a 0.6% drop on the week. Live-cattle for October slipped 0.3 cent to $1.49125 a pound. Feeder-cattle futures for August rose 0.725 cent, or 0.3%, to $2.1520 a pound, for a 1.9% gain since last Friday's close.
