CME update: cattle futures end lower as supplies rise
US live cattle futures sank on 4 May as traders contended with ample supplies of cattle and a steady slaughter pace.
5 May 2021
1 minute read
Reuters reports that CME's June live cattle futures fell 2.275 cents to 113.025 cents per pound, while August feeder cattle futures sank 3.625 cents to 143.175 cents per pound.
Rich Nelson, chief market strategist for Illinois-based broker Allendale, told Reuters that the market was flooded with cattle, pushing prices down.
USDA data shows that packers and processors slaughtered 121,000 cattle, unchanged from a week earlier.
Domestic and export demand for US beef remains robust, traders said. The strong demand is helping to fuel a "significant disconnect" cash cattle and wholesale beef prices, Nelson said.
Choice beef cut-outs jumped by $1.92 per cwt to $301.22, while select cuts rose $0.12 to $283.91, according to the USDA.
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Source: Reuters
