Chicago | Reuters — CME feeder cattle futures fell on Thursday, retreating back toward a three-month low on prospects for increased input costs for livestock operators due to surging corn prices.
“It is the rising feed costs,” said Alan Brugler, president of Brugler Marketing + Management. “With the corn being up another 10 cents today, you had to take the feeders down.”
Live cattle futures also dropped, pressured by weakness in the cash market, while disappointing exports weighed on hog futures.
Chicago Mercantile Exchange (CME) February lean hogs dropped 0.55 cent, to 66.3 cents/lb. (all figures US$).
Estimated pork packer margins dropped $1.10, to $36.20, according to livestock marketing advisory service HedgersEdge.com.
April live cattle futures ended 0.25 cent lower at 117.225 cents/lb.
March feeder cattle dropped 0.95 cent, to 133.375 cents.
The U.S. Agriculture Department said beef export sales totaled 16,800 tonnes in the week ended Jan. 7 up from 9,000 tonnes a week earlier.
Pork export sales of 23,800 tonnes were up from 23,300 tonnes in the prior week, the USDA said.
CBOT March corn futures jumped 9-3/4 cents to $5.34-1/4 a bushel.
— Reporting for Reuters by Mark Weinraub in Chicago.