Chicago | Reuters — Chicago Mercantile Exchange cattle futures fell for the second day in a row on Friday, with expectations that supplies will outstrip demand in the coming months.
The most-active August live cattle futures dropped 0.475 cent to settle at 134.925 cents/lb. (all figures US$). The contract fell below its 10-day moving average but closed above its session low after finding support at the 20-day moving average.
“The story here for the cattle side is the discussion of well-stocked feedyards and general concerns about a recession,” said Rich Nelson, chief strategist with Allendale Inc.
CME August feeder cattle dropped 2.55 cents to close at 176.35 cents/lb. Technical support was noted around the contract’s 200-day moving average.
August lean hogs settled 0.25 cent higher at 109.825 cents/lb., with technical support seen at its 10-day moving average.
For the week, live cattle gained 0.7 per cent, feeder cattle rose 2.7 per cent, and lean hogs were up 0.6 per cent.
— Reporting for Reuters by Mark Weinraub in Chicago.
