Chicago | Reuters — CME Group live cattle futures finished higher on Monday as rising boxed beef prices signaled there is demand in the market, brokers said.
Choice cuts of boxed beef rose by $1, to $263.83 per hundredweight, after climbing by $8.53 on Friday, the U.S. Department of Agriculture said (all figures US$). Select cuts of boxed beef increased by $3.12, to 238.57/cwt on Monday, after jumping by $6.94 on Friday.
Benchmark CME February live cattle advanced 0.275 cent to end at 156.05 cents/lb.
The spot December live cattle contract settled up 0.225 cent at 155.275 cents/lb. The trading volume in December live cattle futures is thin before the contract expires on Dec. 30.
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
Trading of cash cattle is expected to be steady this week ahead of the Christmas holiday, a broker said.
Feeder cattle futures, meanwhile, settled weaker, with the January contract sliding 1.675 cents, to 182.1 cents/lb.
In the hog market, the most-active futures contract topped a one-week high before closing lower. The market also rose on Friday in a rebound from a two-month low reached on Thursday, brokers said.
CME February lean hogs closed down 0.075 cent at 85.7 cents/lb. after reaching their highest price since Dec. 7 at 86.55 cents/lb. February hogs on Thursday hit their lowest price since Oct. 14 at 81.525 cents.
The U.S. Department of Agriculture is scheduled to issue a quarterly Hogs and Pigs report on Friday, along with monthly Cattle on Feed data.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
