Chicago | Reuters – Chicago Mercantile Exchange live cattle futures firmed on Friday, supported by underlying strength in the cash markets and tighter cattle slaughter, analysts said.
August live cattle futures LCQ3 added 2.400 cents to 180.900 cents per pound. Most-active October live cattle LCV3 lifted 1.600 cents to settle at 182.900 cents per pound.
The October contract added 1.84% for the week.
Cash cattle remained mostly steady, though some firmer trade was found in the northern U.S. plains market as high as $189, versus $186 to end last week, while the southern plains held at $178 to $179, the U.S. Department of Agriculture said.
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Meanwhile, cattle slaughter fell to just 113,000 head. For the week, an estimated 35,000 fewer head were processed versus the same period in 2022.
Boxed beef prices fell, with choice cuts trimming 22 cents to $301.79 per cwt., while select cuts lost $1.83 to $276.48 per cwt., the USDA said.
Beef packer margins firmed to $56.98 a head, according to HedgersEdge.com.
September feeder cattle FCU3 futures added 1.800 cents to 253.450 cents per pound.
Lean hog futures regained after softening on Thursday, with nearby August lean hog futures LHQ3 adding 0.025 cents to 101.025 cents per pound, while the most-active October contract LHV3 gained 1.025 cents to 83.075 cents per pound.
The CME’s Lean Hog Index, a two day weighted average of cash prices, inched higher to 105.86, hovering near recent 11-month highs.
Pork cutout eased $1.94 to $113.69 per cwt., while packer margins climbed to $18.51 per head, HedgersEdge.com said.
Hog slaughter also fell, with an estimated 418,000 hogs processed, down from 453,000 a year prior, according to the USDA.
–Reporting for Reuters by Christopher Walljasper.
