Cattle futures dip on profit-taking
19 December 2024
2 minute learn
Chicago Mercantile Trade (CME) cattle contracts slid on Wednesday as profit-taking, a stronger greenback and a selloff throughout agricultural commodities weighed on futures, Reuters reported, citing analysts.
Lean hog futures rose barely on assist from robust demand and secure pork cutout values.
CME January feeder cattle settled down 0.475 cent to 257.000 cents per pound. February reside cattle ended down 1.425 cents to 188.325 cents per pound. February lean hog futures settled up 0.500 cents to 83.700 cents per pound.
“The greenback going greater on the finish of the session and the broad ag liquidation weighed on issues and inspired revenue taking within the absence of massive, contemporary information or a robust money commerce,” Matthew Wiegand, dealer at FuturesOne, stated.
The U.S. greenback, already robust to start the day, shot to a two-year excessive after the U.S. Federal Reserve delivered a price reduce. A stronger greenback usually makes U.S. exports much less aggressive.
Widespread weak point in soybean, corn and wheat futures additionally pressured cattle futures.
“When it is a massive liquidation, you are likely to see issues transfer in tandem,” Wiegand stated.
The U.S.-Mexico border stays closed to cattle imports after the invention of New World screwworm in southern Mexico, additional limiting an already-tight U.S. cattle provide and including a flooring to futures, merchants stated.
Although the U.S. Division of Agriculture (USDA) has signaled the border will reopen for imports within the New 12 months, merchants say tight security protocols will imply a sluggish circulate of imports.
A Reuters ballot launched forward of the USDA’s month-to-month Cattle on Feed report confirmed analysts anticipate U.S. November cattle placements to be 5.1% decrease than final 12 months.
The USDA’s report might be launched on Friday at 2000 GMT (2 p.m. CST).
