CHICAGO, Sept 1 (Reuters) – Chicago Mercantile Exchange live cattle fell 3 percent on Tuesday, their biggest one-day percentage setback since early May, following the U.S. stock market tumble amid global financial concerns, traders said.
Spot-October settled 1.875 cents per lb lower at 141.325 cents, and December down 1.800 cents at 143.625 cents.
Wall Street fell more than 2 percent after weak data from China fanned fears that the world’s second-largest economy will constrict global growth.
Funds liquidated assets across a broad swath of commodities, and a fragile global economy could undermine U.S. exports, traders and analysts said.
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Feed Grains Weekly: Price likely to keep stepping back
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.
Soft beef demand, two consecutive days of futures losses and packers buying cattle for the Labor Day holiday-shortened workweek are bearish for cash prices later this week.
Impressive packer profit margins and a few packers short on inventory week might spend the same for supplies as last week.
In recent weeks, packer margins have become more positive after the decline in cash prices and periodic uptick in wholesale beef values, said West Oak Commodities analyst Tom Tippens.
Market-ready, or cash, cattle bids surfaced in Kansas at $144 per cwt versus up to $150 asking prices there, feedlot sources said. Last week, a small number of cash cattle in the U.S. Plains sold at $144 to $147, feedlot sources said.
The morning’s wholesale choice beef price was down 46 cents to $241.78 per cwt from Monday. Select cuts rose 28 cents to $232.32, the U.S. Department of Agriculture said.
October futures bore the brunt of the day’s losses after the CME late on Monday unexpectedly reported 24 deliveries against that contract.
Live cattle futures losses dragged on CME feeder cattle, with September ending 1.550 cents per lb lower at 200.275.
HOG FUTURES END LOWER
CME lean hogs were pressure by soft cash prices and live cattle market selling, traders said.
Spot-October closed down 0.050 cent per lb at 67.975 cents, and December 0.650 cent lower at 62.975.
USDA quoted the morning’s Iowa/Minnesota average cash hog price at $72.60 per cwt, down 70 cents from Monday.
Labor Day plant shutdowns reduced packer needs for supplies, while a few retailers wrapped up buying before the upcoming holiday, the traders said.
Tuesday morning’s wholesale pork price was at $86.83 per cwt, 99 cents higher than on Monday, supported by the nearly $10 jump in ribs, based on USDA data.
