CME update: cattle futures rebound, breaking their seven-session losing streak
US live cattle futures jumped on 31 August to snap an ongoing losing streak.
1 September 2020
1 minute read
Reuters reports that live cattle were expected to rebound after falling last week due to pressure from weak cash markets. According to traders, short covering helped lift prices.
"We broke pretty sharply here on the cattle," said Matt Wiegand, commodity broker for FuturesOne.
CME benchmark October live cattle ended up 0.400 cent at 105.300 cents per pound, after falling earlier in the session to its lowest price since 28 July.
October feeder cattle rose 0.450 cent to 140.625 cents per pound.
Cash cattle prices may fall further this week, putting renewed pressure on futures, traders said.
Boxed beef prices were under pressure on Monday 31 August, with choice cuts declining by $2.05 to $227.35 per cwt, according to US Department of Agriculture data.
Traders are waiting to assess US beef demand following the upcoming Labour Day holiday in the United States. Typically, consumers shift purchases to meats consumed indoors like roasts from steaks that go on the grill.
"Boxed beef looks like it's peaked for now," said Wiegand.
Meat packers slaughtered an estimated 119,000 head of cattle, up from 117,000 a week earlier.
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Source: Reuters
