Chicago | Reuters — Chicago Mercantile Exchange cattle futures fell on Monday as traders took positions ahead of a U.S. government report later this week that was expected to show burgeoning supplies.
“There is a little bit of concern about excess supplies and large finishing weights,” said Rich Nelson, chief strategist with Allendale Inc.
Hog futures firmed after two losing sessions to end last week pushed the front-month contract to its lowest in nearly two weeks.
CME April lean hog futures gained 1.225 cents to end at 100.625 cents/lb. (all figures US$). Most-active June hogs rose 3.75 cents to finish at 119.825 cents/lb., breaking through technical resistance at their 10-day moving average.
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CME’s most-active June live cattle fell 0.725 cent to 136.35 cents/lb. April feeder cattle dropped 1.125 cents to 161.2 cents/lb., while most-active May feeder cattle dropped 1.7 cents to 165.75 cents/lb.
The U.S. Agriculture Department will release its monthly cattle on feed report on Friday at 2 p.m. CT.
Choice cuts of boxed beef rose by $1.26, to $259.42/cwt, by Monday morning, according to USDA data. Select cuts gained $1.94, to $252.59/cwt.
— Reporting for Reuters by Mark Weinraub in Chicago.
