CME update: cattle futures gain ground ahead of monthly USDA report
US live cattle futures strengthened on 19 January as traders began positioning ahead of the 22 January monthly Cattle of Feed report from the USDA.
20 January 2021
1 minute read
Reuters reports that feeder cattle futures also rose, supported by weaker feedgrain futures.
April live cattle futures ended 1.150 cents higher at 110.350 cents per pound, while March feeder cattle gained 0.975 cent to settle at 136.800 cents.
Boxed beef cut-out values strengthened, with choice cuts firming $2.45 per cwt to $217.49 and select cuts adding 60 cents to $206.44 per cwt, according to the USDA.
Daily cattle slaughter was up slightly from a week ago at 117,000 head processed, though down 5.6 percent from the same week last year.
"We assume we'll see further cutbacks in breeding herd," said Alan Brugler, president of Brugler Marketing. "We think the cattle cycle topped, and is still unwinding, and COVID just accelerated that process."
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Source: Reuters
