Chicago | Reuters—Chicago Mercantile Exchange cattle futures rose for the fourth session in a row on Wednesday, as a continued tight supply of cattle and resilient consumer demand for beef boosted futures, traders said.
Ahead of the U.S. Department of Agriculture’s monthly Cattle on Feed report, analysts expect a reduction of cattle placed in feedlots and marketed compared to the same period a year ago. The report will be released after the market’s close on Friday.
A historically low supply of cattle, which has been further constrained by the closure of the U.S.-Mexico border to feeder cattle imports, has continued to fuel gains.
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“It’s the same thing that’s been going on for a long time,” Doug Houghton, analyst at The Brock Report, said.
CME October live cattle futures LCV25 ended 3.5 cents higher at 234.85 cents per pound. September feeder cattle FCU25 rose 5.675 cents to 358.1 cents per pound.
The choice boxed beef cutout value was last down $1.35 on Wednesday afternoon at $405.85 per hundredweight (cwt), according to USDA data. The select beef cutout was up $3.40 to $383.16 per hundredweight.
Screwworm, a parasitic fly that eats livestock and wildlife alive, has moved north in Mexico toward the U.S. border and prompted the USDA to cut off Mexican cattle imports.
U.S. health officials gave the Food and Drug Administration the power to quickly authorize veterinarians and farmers to treat or prevent infestations of a flesh-eating livestock pest with animal drugs that may be approved for other purposes or available in other countries, the Department of Health and Human Services said on Tuesday.
Lean hog futures ended slightly lower. CME October lean hogs LHV25 lost 0.2 cent to settle at 89.95 cents per pound.
