Reside, feeder cattle futures tip decrease
12 February 2025
2 minute learn
Chicago Mercantile Change (CME) hog futures rose on Tuesday on greater money market costs, as a looming winter storm made meatpackers extra prepared to pay up for hogs in an effort to acquire the animals earlier than wintry climate makes transportation of livestock too troublesome, Reuters reported.
The storm bringing heavy snow, ice and frigid temperatures is forecast to hit the northern US, together with main hog-producing areas, this week.
Reside cattle and feeder cattle futures tipped decrease on Tuesday after the US Division of Agriculture in its month-to-month provide and demand report elevated manufacturing projections for beef in comparison with the earlier month.
Most-active CME April dwell cattle futures ended down 2.125 cents to 196.000 cents per pound, after hitting the contract’s lowest level since January 2. March feeder cattle settled down 3.350 cents to 264.775 cents per pound.
In CME’s hog market, April futures edged up 1.350 cents to 92.975 cents per pound.
Hog futures have additionally gained help from a smaller-than-expected provide of slaughter-ready hogs.
“Packers are having hassle sourcing hogs,” Dennis Smith, a dealer at Archer Monetary Providers, stated. “Hog numbers proceed to come back in decrease than projections, and that is contributing to a very nice transfer in money hogs and the pork cutout.”
In beef, the USDA stated a bigger calf crop and the resumption of cattle imports from Mexico contributed to its elevated manufacturing forecast.
The USDA two weekends in the past stated it could resume cattle imports from Mexico that the company had blocked since late November over a pest discovered south of the border, which has added stress to cattle futures.
Moreover, a brand new pressure of chook flu present in dairy cattle and one other human case of chook flu in Nevada sparked a selloff in beef cattle, as merchants anxious chook flu fears would dent client demand for beef, regardless that chook flu has solely been present in dairy cattle.
