CME update: cattle futures extend losing streak

US live cattle futures fell for a seventh straight day on 28 August as traders waited for the seasonal slowing of demand after the Labour Day holiday.
calendar icon 31 August 2020
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Reuters reports that the losses in the futures market stemmed from weekly declines in the cash markets as well as the typical downturn at the end of summer.

CME benchmark October live cattle fell 1.25 cents to close at 104.90 cents per pound, hitting its lowest since 28 July. The contract closed below its 50-day moving average for the first time since June 28.

Cattle futures have fallen for seven days in a row, with supplies in focus following a bearish Cattle on Feed report from the US Agriculture Department on 21 August.

October feeder cattle dropped 0.975 cent to 140.175 cents per pound.

"Live cattle futures are now a quick $5 off their highs of last week and feeders $9, all ahead of what the industry expects to be a seasonal late summer correction across the cash markets and beef markets post-Labour Day," brokerage StoneX said in a note to clients.

The USDA said the daily cattle slaughter fell by 3,000 head to 116,000 on Friday 28 August.

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Source: Reuters

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