CME update: live cattle futures rise as cash prices strengthen

US live cattle futures firmed on 28 July, supported by expectations of higher prices in the cash market for slaughter-ready cattle.
calendar icon 29 July 2020
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Brian Hoops, president of Midwest Market Solutions, told Reuters, "cash could be steady to $1 to $2 (per cwt) better this week. Some of the show lists are smaller than last week, and that has (led to) ideas we are going to see improved cash trade."

August live cattle futures on the Chicago Mercantile Exchange (CME) settled up 0.475 cent at 100.900 cents per pound while the most-active October contract rose 1.175 cents to 105.000 cents a pound.

CME August feeder cattle futures ended up 1.350 cents at 140.700 cents per pound and September feeder cattle rose 1.675 cents to 141.300 cents per pound.

Feeder cattle futures drew support from a drop in Chicago Board of Trade corn futures tied to expectations of a big US grain harvest this autumn. Cheaper corn tends to make feedlots more profitable, encouraging feedlot operators to buy more feeder cattle.

"We've seen big demand for feeders, a couple dollars higher at most of the sale barns that we follow," Hoops said.

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Source: Reuters

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