Chicago | Reuters—Chicago Mercantile Exchange (CME) feeder cattle ticked up on Wednesday on a rebound in bargain buying following a steep dive in the previous session.
Meanwhile, U.S. stocks inched higher and corn futures continued to linger near four-year lows, adding support to the market, traders said.
The S&P 500 and the Nasdaq notched gains as the most recent meeting of the Federal Reserve cemented expectations for a September rate cut.
The previous day’s tumble was driven largely by technical selling.
Read Also
Feed Grains Weekly: Price likely to keep stepping back
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.
“Feeders got oversold and corn is not showing a lot of movement so it allowed for a bit of a rebound today,” Matthew Wiegand, broker at FuturesOne, said. “There’s not a lot of urge to push it lower.”
Most-active October feeder cattle FCV24 finished 0.35 cents higher at 231.675 cents per pound after setting a new low at 299.35 cents per pound. Five other contracts also set lifetime lows.
Meanwhile, CME most-active October live cattle LCV24 closed down 0.975 cents at 174.625 cents per pound, while six back-month contracts set lifetime lows.
Fund selling and a weak cash market may be pressuring live cattle futures, Dan Basse, president of AgResource, said.
Industry players remain concerned over demand as consumers grapple with inflated food costs, while uncertainty over the outcome of the U.S. presidential election in November may add volatility into the market.
Boxed beef and pork cutout values largely increased as of Wednesday afternoon, according to U.S. Department of Agriculture data.
CME October lean hog futures LHV24 ended down 0.25 cents at 76.15 cents per pound.
