Chicago | Reuters—Chicago Mercantile Exchange cattle futures retreated on Thursday in a profit-taking and technical setback after three sessions of gains and as disappointing weekly beef export sales data weighed on the market.
Futures, however, remain supported by tight supplies of cattle and strong beef prices.
Lean hog futures followed cattle contracts lower, pressured by rising supplies and a drop in pork export sales last week.
“Livestock contracts were deep in the red today with the heaviest losses seen in cattle. Long liquidation was the primary cause of this as contracts have been holding at all-time highs in overbought territory,” Karl Setzer, partner with Consus Ag Consulting, said in a note to clients.
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“Disappointing weekly red meat export sales weighed on both cattle and hogs.”
The U.S. Department of Agriculture said exporters sold a net 4,282 metric tonnes of U.S. beef in the week ended August 7, down 73 per cent from a week earlier and a marketing-year low. Net U.S. pork export sales fell 32 per cent to 21,102 tonnes, the lowest in three weeks.
CME October live cattle futures LCV25 ended 2.600 cents lower at 226.825 cents per pound, while September feeder cattle FCU25 tumbled 5.600 cents to 346.625 cents per pound. October lean hogs LHV25 fell 1.650 cents to 89.125 cents per pound.
Before Thursday’s drop, cattle futures had been climbing toward recent contract highs, helped by rising wholesale beef prices.
The choice boxed beef cutout value added another $3.30 on Thursday afternoon to $393.79 per hundredweight (cwt), up $14.95 in the week so far, according to the U.S. Department of Agriculture. The select beef cutout was down $1.08 on Thursday at $366.88 per cwt after jumping by $12.87 over the previous three days.
—Prices reported in U.S. dollars
