Chicago cattle futures fell on Tuesday on a hefty technical correction.
“I think that’s what we’re seeing now. A correction,” wrote analyst Jefferson Fosse with Walsh Trading.
Most-active October live cattle contracts closed at 230.175 cents a pound, down 5.625 cents. December contracts closed down 6.400 cents to 231.175 cents per pound.
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The market has been trending higher higher for more than two months without a meaningful correction or retracement, Fosse wrote in his analysis of the December live cattle chart. That contract saw the lowest close since August 15, he added.
Analyst Christopher B. Swift tied the losses to updated U.S. job numbers, which showed the economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated.
With this chink in the armor of U.S. employment, “grocers and restaurants are expected to be overly cautious about buying out in front, leading to the potential for packers to not need as many cattle,” Swift wrote.
Most-active October feeder cattle futures settled at 349.925 cents a pound, down 9.250 cents. November feeders closed at 348.875 cents a pound, also down 9.250 cents.
Choice boxed beef was valued at $407.67 per cwt in the USDA’s afternoon report, a loss of $2.02 from Monday. Select boxed beef gained $1.62 to settle at $386.96 per cwt.
Most-traded October lean hog futures closed at 96.125 cents a pound, up 0.975 cents. December lean hogs settled at 87.850 cents a pound, down 0.300 cents.
The USDA reported pork carcass cutout value at $114.16 per cwt, down $2.22.
