8 March 2024

2 minute learn

Chicago Mercantile Alternate (CME) stay cattle futures ended greater on Thursday as firming wholesale beef costs fuelled optimism that money cattle costs would rise, Reuters reported, citing merchants.

CME benchmark April stay cattle settled up 1.475 cents at 188.725 cents per pound, whereas April feeder cattle futures rose 0.425 cent to complete at 256.300 cents per pound. A 2% bounce in Chicago Board of Commerce corn futures capped good points in feeder cattle, signalling greater feed prices.

Meat-packers have been fighting detrimental revenue margins for processing cattle, however an upturn in wholesale beef costs since mid-February has helped stem the losses.

The US Division of Agriculture (USDA) reported the selection boxed beef cutout on Thursday afternoon at $306.61 per hundredweight (cwt), up $1.70 from Wednesday and the best studying since Oct. 30.

“The boxed beef market has been comparatively sturdy currently,” mentioned Austin Schroeder, analyst for Brugler Advertising and marketing & Administration in Nebraska. “If you happen to do get energy, it is aid for packers,” he mentioned.

Within the money market, packers have been bidding at $182 to $183 per cwt this week for market-ready cattle whereas feedlot affords had been $186 to $187, merchants mentioned. Money commerce has been quiet within the southern Plains to date this week however may start on Friday. Money cattle traded final week at round $183 per cwt.

Nevertheless, weak margins have prompted meat-packers to sluggish the slaughter tempo, an element that would restrict the quantity of money commerce.

“I do not know the way hey aggressive they’ll be in attempting to purchase cattle, just because I do not suppose we’re going to see a lot of a weekend kill,” mentioned Sterling Smith, director of agricultural analysis at AgriSompo North America.

CME lean hog futures closed blended. Essentially the most-active April contract settled down 0.475 cent at 84.525 cents per pound whereas June hogs ended up 0.650 cent at 101.150 cents per pound.

The USDA priced the carcass cutout late Thursday at $91.15 per cwt, down 34 cents from Wednesday.

In its weekly export gross sales report, the USDA reported US pork gross sales within the week to Feb. 29 at 36,400 tons and beef gross sales at 14,000 tons.