Chicago | Reuters — U.S. cattle futures rose on Wednesday, rebounding from Tuesday’s downturn, while hog futures eased.
Traders said that signs of strength in the cash market added support to the strength in both live and feeder cattle contracts. Technical buyers also helped pushed prices higher after early signs of strength.
Chicago Mercantile Exchange (CME) February live cattle futures ended up 0.75 cent at 125.325 cents/lb., rising above its five-day, 20-day and 30-day moving averages (all figures US$).
January feeder cattle futures rose 1.125 cents to 142.775 cents/lb. The contract rallied through its 20-day, 40-day and 50-day moving averages, closing just below its session peak of 142.925 cents.
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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.
CME lean hogs for February delivery fell 0.25 cent to 67.725 cents/lb. The contract faced technical resistance at its 20-day moving average, a level it has not closed above since Nov. 14.
China’s agriculture ministry said on Wednesday that African swine fever had been detected in three dead wild boars in northwestern Shaanxi province.
Cooling enthusiasm about the prospect of a phase one trade deal between China and the United States mitigated strength from the concerns about swine fever.
U.S. President Donald Trump has days to decide whether to impose tariffs on nearly $160 billion in Chinese consumer goods.
