Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

LIVESTOCK-Cattle futures gain; medium/long term supplies tighten

07/23/2021 | 06:00pm EDT

CHICAGO, July 23 (Reuters) - CME feeder cattle futures firmed on Friday, bolstered by lower corn and wheat markets that may translate into eased feed costs, traders said.

CME live cattle also gained and are expected to firm next week as the trade digests the U.S. Department of Agriculture's monthly cattle on feed report released after the market close, showing fewer than anticipated cattle placed on feed.

June cattle on feed placements fell to 93% versus a year prior, the USDA said, missing trade estimates by nearly 3 points.

"We have a very well-supplied market in the short term," said Rich Nelson, chief strategist at Allendale, Inc. "This is going to tighten up the December-March live cattle supply."

CME's October live cattle futures, the most-active cattle contract, rose 0.475 cents to 127.150 cents per pound, while nearby August futures gained 0.700 cent to 121.5 cents.

CME August feeder cattle finished 1.875 cents higher at 160.075 cents per pound.

The long term outlook for cattle supplies dropped 1%, with 101 million head of cattle and calves in the U.S. as of July 1, according to the USDA's biannual cattle report, also released Friday afternoon.

"This will continue to tighten up the supply picture, for the next 2-3 years," said Nelson.

The wholesale beef market will likely remain elevated due to the tighter supply, Nelson said. Choice cuts of wholesale boxed beef added 49 cents to $266.63 per cwt, while select cuts gained 17 cents to $249.94 per cwt.

"Wholesale and likely retail beef prices will remain elevated, if not increase more so in the coming 2-3 years," said Nelson. Meanwhile, CME lean hogs gained as supply issues persist, with August futures climbing 0.700 cents to 106.65 cents per pound, while most-active October dipped 0.900 cent to 92.625 cents.

Hog supplies are near a seasonal low, though Nelson said the slim supply of market-ready hogs is lower than anticipated.

"They're even tighter than we expected," said Nelson, noting the drop in hogs ready for slaughter is three times bigger than anticipated in June.

For the week, processors slaughtered 2.3 million hogs, down 2% from the same week a year ago. (Reporting by Christopher Walljasper; Editing by Sandra Maler)


ę Reuters 2021
Latest news "Economy & Forex"
06:48aOman Air says wants to join oneworld airline group
RE
06:32aRESERVE BANK OF ZIMBABWE : Money Update as at 17 September 2021
PU
06:28aBehave normally, UK transport minister tells Britons queuing for fuel
RE
06:05aExplainer-What are Congress' options for funding the gov't and raising the debt limit?
RE
05:54aUK warned visa plan to fix truck driver shortage will not solve crunch
RE
05:34aCryptocurrency exchange Huobi to clean up existing mainland clients by end-2021
RE
05:18aJapan PM contenders press for government support for education
RE
05:11aLondon drivers feel the pinch as gas stations run dry
RE
05:00aChina's Geely to set up 5,000 battery swapping stations by 2025
RE
04:54aBrexit threats not helpful in solving N.Ireland problems, says EU
RE
Latest news "Economy & Forex"