CME update: cattle futures gain ground ahead of USDA report

US live cattle futures rose on 23 September as traders weighed improving slaughter rates against expectations of higher placements in the USDA’s Cattle on Feed report.
calendar icon 24 September 2020
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The report will be released on Friday afternoon. Doug Houghton, analyst at Brock Capital Management told Reuters, “The beef market looks like it’s possibly stabilising, and that should be supportive for cattle prices in the near term.”

The USDA estimated 120,000 head processed on Wednesday 23 September, up from 118,000 on the same day a year ago, but Houghton said summer backlogs of market-ready cattle could continue to work through the processing system through the new year.

"The report should show large placements again in August, which should be negative for the February and April contracts, which are already at large premiums to cash."

Chicago Mercantile Exchange October live cattle settled 0.675 cent higher at 107.150 cents per pound and December gained 1.025 cents to end at 111.200 cents.

CME October feeder cattle settled 0.900 cent higher at 141.525 cents per pound, and most-active November ended up 0.475 cents at 141.650 cents.

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Source: Reuters

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