Chicago | Reuters — Chicago Mercantile Exchange live cattle futures ended mixed on Thursday as traders awaited U.S. Department of Agriculture data on the number of cattle in feedlots.
USDA’s Cattle on Feed report, due Friday at 2 p.m. CT, is expected to show U.S. feedlots held 1.3 per cent more on May 1, compared with a year ago, according to a Reuters survey. An increase could mark four months in a row of record feedlot inventories since the current data series began in 1996, brokerage Allendale said.
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The report is also expected to show placements in feedlots during April were down 4.6 per cent from last year and marketings were down two per cent.
“The U.S. beef market will be well-supplied into early September,” Allendale said.
CME June live cattle futures finished flat at 131.5 cents/lb. after earlier dropping to its lowest price since May 9. Most-active August live cattle ended up 0.325 cent at 132.025 cents/lb. after falling on Wednesday to its lowest price since Nov. 2 (all figures US$).
Futures have come under pressure recently as high meat prices threaten to reduce U.S. demand, particularly expensive cuts of beef, analysts said.
U.S. Senators Elizabeth Warren and Mike Rounds on Thursday introduced a bipartisan resolution asking the Federal Trade Commission to investigate beef companies for potential price fixing.
Prices for choice cuts of boxed beef rose $1.23, to $261.70/cwt, and select cuts edged up four cents, to $246.06/cwt, USDA said.
CME August feeder cattle ended down 0.6 cent at 165.2 cents/lb. and matched a low of 164.6 set on Wednesday.
Lean hog futures, meanwhile, were weaker at CME. The June contract ended down 0.8 cent at 105.3 cents/lb. after earlier reaching its highest price in about two weeks. July lean hogs closed 1.55 cents lower at 106.975 cents/lb.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
