CHICAGO, June 22 (Reuters) – Chicago Mercantile Exchange live cattle futures fell for a second straight day on Thursday, pressured by fallen cash and wholesale beef values, said traders.
The June contract, which will expire on June 30, closed 0.875 cent per pound lower at 118.625 cents.
Most actively-traded August finished 1.075 cents lower at 114.275 cents.
So far this week market-ready, or cash, cattle in the southern U.S. Plains sold from mostly $120 to $123 per cwt, down from $127 to $133 in the region last week, said feedlot sources.
Processors paid less for supplies as beef prices at wholesale decline seasonally, said traders and analysts.
Read Also
Arlene Dickinson says recent trip to Asia opened her eyes to new trade opportunities
Arlene Dickinson says Canada must take up decades-old suggestions to support the agriculture and food sectors
Packers are buying cattle without having to compete for them, which has significantly expanded their margins, a trader said.
Thursday afternoon’s U.S. Department of Agriculture monthly cold storage report showed May total beef stocks at 412.87 million pounds, down from analysts’ projected average of 438.6 million.
Some investors might cover short positions before the weekend following the two-day futures slide, while others adjust positions before Friday’s USDA monthly Cattle-On-Feed report.
Live cattle futures losses and lower cash feeder cattle prices undercut CME feeder cattle contracts.
August feeders ended 1.200 cents per pound lower at 143.450 cents.
HOGS PARE RECENT GAINS
CME lean hogs settled in bearish territory for the first time in five sessions, pressured by technical selling and Thursday’s cash and wholesale pork price retreat, said traders.
July ended 1.050 cents lower at 85.025 cents.
August 2.350 cents lower at 79.875 cents, and below the 10-day moving average of 80.595 cents.
Hog numbers may be rising counter seasonally as moderating temperatures in parts of the Midwest causes pigs to grow quicker, reaching slaughter weight earlier than expected, said traders and analsyts.
They said wholesale pork prices tend to top out around late June, after retailers fill inventories for U.S. Fourth of July holiday grilling advertisements.
The U.S. government on Thursday put total pork in cold storage last month at 592.127 million pounds, topping the trade’s expectation for 572 million.
