Chicago | Reuters — Chicago Mercantile Exchange live cattle futures topped a three-week high in the most-active contract on Friday before ending lower amid pre-weekend profit-taking, analysts said.
Feeder cattle futures also exceeded a three-week high, while lean hog futures came under pressure at the CME.
Strong demand for cattle from meatpackers and a decline in the U.S. herd size have helped support live cattle futures, analysts said. Cattle inventories are tightening amid drought in the United States and high costs for livestock feed.
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World food prices dipped in May for a second consecutive month after hitting a record high in March, although the cost of cereals rose and the meat index hit an all-time high, the United Nations’ food agency said.
U.S. beef processors on Friday slaughtered an estimated 126,000 cattle, up from 120,000 cattle a week earlier and 120,000 a year ago, the U.S. Department of Agriculture said.
CME June live cattle touched 133.925 cents/lb., its highest since May 17, before backpedaling to end 0.025 cent lower at 133.6 cents (all figures US$).
The most-active August live cattle contract touched its highest since May 12 at 134.575 cents before closing down 0.275 cent at 133.85 cents.
Deferred live cattle futures settled firmer, along with feeder cattle futures. A setback in grain futures at the Chicago Board of Trade helped support gains in feeder cattle, a broker said.
CME August feeder cattle ended up 0.925 cent at 173.875 cents/lb. and reached its highest price since May 10.
In the pork market, most-active July lean hog futures dropped 1.425 cents to close at 110.75 cents/lb.
Carcass values in the U.S. pork cutout fell by $2.64, to $109.38 per hundredweight, while belly values tumbled $16.66, to $160.53/cwt, USDA said.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
