Chicago | Reuters — Chicago Mercantile Exchange live cattle futures closed mostly lower on Friday, pressured by rising corn prices that depressed feeder cattle futures, traders said.
But firmer cash cattle prices this week underpinned the market.
CME January feeder cattle futures fell 1.35 cents to end at 157.725 cents/lb., sagging as Chicago Board of Trade corn futures rose 1.4 per cent, signaling higher costs for cattle feed (all figures US$).
In live cattle futures, the most-active February contract ended down 0.3 cent at 136.1 cents/lb., and deferred contracts closed lower as well.
Read Also
BASF cuts 2025 outlook as tariffs weigh on global economy
Germany’s BASF said on Friday that it was lowering its full-year outlook, citing weaker-than-expected global economic growth and reduced demand for its chemicals due to U.S. tariffs.
However, the spot December contract settled up 0.25 cent at 132.125 cents/lb., paring gains after notching a two-month high at 132.625 cents.
Market-ready cattle traded at $131-$132 per hundredweight (cwt) in southern U.S. Plains cash markets this week, up $2-$3 from last week.
“We’re looking for cattle to trade steady-higher again next week. Packer margins remain huge, $500 a head,” said Don Roose, president of Iowa-based U.S. Commodities.
“(Cattle) numbers are tightening. And you are getting ever so close to where you could get into winter issues,” Roose said, adding that wintry weather tends to slow the transport of cattle and hogs.
In the hog market, CME lean hog futures closed higher on a mix of technical buying ahead of the weekend and support from Thursday’s jump in wholesale pork prices.
CME December lean hogs settled up 0.5 cent at 75.875 cents/lb. and February hogs ended up 1.475 cents at 80.55 cents.
Wholesale pork prices declined on Friday afternoon, with the U.S. carcass cutout value down $1.09, at $94.71/cwt. That retreat followed a jump of more than $5 a day earlier.
— Julie Ingwersen is a Reuters commodities correspondent in Chicago.
