Chicago | Reuters — Chicago Mercantile Exchange live cattle futures climbed to a July high on Thursday while feeder cattle set new contract highs.
Tight supplies continue to support the markets, analysts said, after U.S. producers reduced their cattle herds over the last year as drought limited the availability of pastures for grazing.
October live cattle advanced 0.95 cent to close at 183.65 cents/lb. and touched their highest price since July 20 at 184.525 cents (all figures US$).
October feeder cattle finished up 2.4 cents at 258.875 cents/lb. and reached a contract high of 259.475 cents.
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U.S. livestock: Feeder cattle extend rally to new highs
Chicago Mercantile Exchange feeder cattle futures extended gains to record highs on Wednesday while live cattle futures set a contract high before pulling back.
The markets extended strong gains from Wednesday.
Expectations that a rally in cash cattle prices may restart in a few weeks are supportive for futures, said Rich Nelson, chief strategist for brokerage Allendale.
Nelson said cash cattle traded lower than last week in Nebraska on a dressed basis. However, there was talk of cash trades of $184/cwt in Nebraska on a live basis, which would be up from about $182-$183/cwt last week, he said.
Brokers added that small volumes traded in Kansas at $179/cwt, up about $1 from last week.
Boxed beef prices weakened further, the U.S. Department of Agriculture said. Choice cuts dropped another $1.91, to $311.66/cwt, and select cuts decreased $1.44, to $286.17/cwt.
USDA separately quoted the wholesale pork carcass cutout at $94.21/cwt, down $4.12 from Wednesday.
October lean hog futures ended up 0.95 cent at 82.825 cents/lb. at the CME and stayed within Wednesday’s trading range.
Traders on Friday will review weekly U.S. export sales data for pork and beef.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
