Chicago | Reuters — Chicago Mercantile Exchange live cattle futures firmed on Monday, supported by strong beef demand and slaughter, analysts said.
“The next few months — late March, early April — slaughter-ready cattle are a little tighter,” said Austin Schroeder, commodity analyst at Brugler Marketing. “That might help to lend a little more support to those cash prices, give those feedlots a little more leverage on the packers.”
April live cattle ended 0.175 cents higher at 146.35 cents/lb. (all figures US$). March feeder cattle closed 0.65 cent higher at 166.875 cents/lb., supported by Chicago Board of Trade corn futures that traded lower for much of the day before rebounding late in the session.
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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.
Cash cattle trade was quiet on Monday, holding steady near $140/cwt, across the U.S. Plains, according to the U.S. Department of Agriculture (USDA).
Packers slaughtered an estimated 121,000 cattle on Monday, in line with pace from a week ago and 57.14 per cent higher than a year ago, USDA said.
Choice cuts of boxed beef fell 56 cents, to $273.96/cwt, while select cuts added 92 cents, to $268.75/cwt, USDA said.
CME lean hog futures also benefitted from tighter supplies amid strong demand.
April lean hog futures added 0.1 cents, to 102.325 cents/lb.
“Cash prices have been rallying. It’s overall good demand,” said Schroeder.
The CME’s Lean Hog Index, a two-day weighted average of cash hog prices, added $1.18, to $88.92/cwt.
Hog slaughter eased to 470,000 head, down 2.3 per cent from the same day a week ago but up 16 per cent from the same day a year ago, USDA said.
— Reporting for Reuters by Christopher Walljasper in Chicago.
