CME update: live cattle futures fall with corn while feeder cattle rise
CME live cattle futures extended their losses on 14 May on long liquidation that also dragged down corn futures.
17 May 2021
2 minute read
Reuters reports that it was the second consecutive day that cattle futures followed declines in the Chicago Board of Trade corn market, which has retreated from eight-year highs reached last week.
"Cattle got caught up in the liquidation," said Matt Wiegand, a commodity broker for FuturesOnes.
CME June live cattle futures settled down 0.300 cent at 115.300 cents per pound. August live cattle slid 0.575 cent to 118.825 cents.
The decline in corn futures helped boost CME's feeder cattle market, traders said, by easing concerns about high costs for livestock feed.
August feeder cattle finished up 0.650 cent at 151.150 cents per pound.
At the CBOT, July corn settled 31 cents lower at $6.43-3/4 per bushel.
Cheaper corn can boost profit margins for cattle feeders, who have grappled recently with soaring feed costs and complained about huge profit margins for meat packers.
Beef processors enjoyed margins of $752.25 per head of cattle, up from $732.80 per head a week ago, according to livestock marketing advisory service HedgersEdge.com.
Prices for choice cuts of boxed beef rose by $0.16 to $316.94 per hundredweight (cwt), while select cuts dropped by $2.72 to $293.19 per cwt, according to the U.S. Department of Agriculture.
"The beef values have held up well, but it looks like the rally may be coming to an end there," Wiegand said.
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Source: Reuters
