Chicago | Reuters — U.S. live cattle futures firmed on Monday, with fund buying sparking the gains due to expected strength in the cash markets, traders said.
“The trade continues to feel that the cash market has bottomed,” said Don Roose of U.S. Commodities. “It continues to feel that the cash market will trade from $1 to $2 higher [all figures US$] this week.”
The front-month Chicago Mercantile Exchange live cattle futures contract has risen for five straight sessions, its longest stretch of higher closes since March. But the daily gains have been modest and the front-month contract has risen just 2.5 per cent during the streak.
Read Also
U.S. grains: Soybeans, corn rebound on technical trading, bargain buying
Chicago soybean and corn futures surged on Thursday on short covering and bargain buying after prices sank low enough to attract buying interest, though supply pressure from favorable U.S. crop conditions continue to loom over the market, analysts said.
CME August live cattle futures settled up 0.2 cent at 103.025 cents/lb. Most-active October rose 0.4 cent to close at 108.275 cents/lb., peaking at 108.45 cents, its highest since March 6.
Benchmark September feeders rose 0.85 cent to 147.075 cents/lb.
CME October lean hog futures settled down 1.225 cents at 44.4 cents/lb.
Hog futures suffered from a glut of supplies on the market, as expected euthanizations during the spring never reached the 7.5 million initially forecast, Roose said.
Meatpacker Tyson Foods on Monday said the COVID-19 pandemic will increase operating costs and hinder sales volumes into next year. The company reported quarterly sales of $10.02 billion, down from $10.89 billion a year earlier.
— Reporting for Reuters by Mark Weinraub in Chicago.
