Chicago | Reuters—Chicago Mercantile Exchange live cattle and feeder cattle futures edged up on Tuesday on stock market gains and strong economic data, traders said.
Positive economic data often boosts cattle futures as consumers are more likely to opt for beef, which is pricier than other meats, when the economy is doing well.
U.S. retail sales rose in August and production at factories rebounded, suggesting the economy remained on a solid footing through much of the third quarter.
“The cattle market has been following equities more than anything else,” Altin Kalo, economist at Steiner Group, said. “The economy is seeming more resilient.”
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
However, wholesale U.S. boxed beef prices have trended downward over the past week, suggesting consumer demand may still be weak, traders said.
Choice boxed beef prices slid by 89 cents to $303.68 per hundredweight and select cuts of boxed beef rose by 35 cents to $292.49 per hundredweight, according to U.S. Department of Agriculture data published on Tuesday morning.
CME October live cattle futures LCV24 ended up 1.575 cent at 178.80 cents per pound. October feeder cattle FCV24 ended up 1.75 cent at 240.75 cents per pound.
On Friday, analysts expect monthly U.S. Department of Agriculture data will show there were 0.9 per cent more cattle in U.S. feedlots on Sept. 1 than a year earlier, according to a Reuters poll. As of Aug. 1, there were 11.1 million cattle on feed, up 0.3 per cent from a year ago, the USDA said.
Hog futures strengthened on a spate of short covering triggered by relatively strong pork cutout values and signs that pork demand remains strong, traders said.
October hog futures LHV24 settled up 1.85 cents at 81.775 cents per pound.
