Chicago | Reuters — Chicago Mercantile Exchange live cattle futures eased on Tuesday after two sessions higher, as traders watch to see the impact of sweltering temperatures on slaughter-ready cattle, analysts said.
“The heat does hurt the weights. That’s been an issue for a lot of the south, for a lot of the summer,” said Don Roose, president of U.S. Commodities.
Most-active October live cattle slid 1.25 cents, to 178.625 cents/lb. (all figures US$). September feeder cattle dipped 1.325 cents to close at 249 cents/lb.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Beef packer margins declined versus Monday and a week ago, falling to $47.30 per head, according to Denver-based Hedgers Edge.
Boxed beef prices firmed, with choice cuts adding $1.49, to $317.05 per hundredweight (cwt), while select cuts gained $2.18, to $289.51/cwt, according to the U.S. Department of Agriculture.
Cattle slaughter fell to 124,000 head, down from 125,000 a week earlier and 127,00 the same period last year, USDA said.
CME lean hog futures eased for a second session, pressured by a seasonal increase in supplies, analysts said.
“Hog supplies are going to be larger, but we’re still in a liquidation in hogs, so we have pressure here to end the year,” said Roose.
The most-active October futures lost 1.05 cents, to 79.575 cents/lb.
Daily hog slaughter of 476,000 head was down from 482,000 the same period last year.
USDA quoted the wholesale pork carcass cutout at $103.65/cwt, down 1.56 cents from Monday.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
