USA: Live cattle futures slip on waning consumer demand

Published 2024년 9월 18일

Tridge summary

CME live and feeder cattle futures have fallen due to a decrease in boxed beef prices and reduced consumer demand, as Americans are cutting back on expensive beef cuts due to inflation. Wholesale boxed beef prices have dropped, with Choice cuts falling by 35 cents to $304.57 per hundredweight, and select cuts decreasing by $2.03 to $292.14 per hundredweight. As a result, October live cattle futures dropped by 0.425 cent to 177.225 cents per pound, and October feeder cattle futures fell by 0.125 cent to 239 cents per pound. The decline in hog futures is attributed to anticipated seasonal increases in the US pig slaughter pace and heavier hogs entering the market.

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Original content

Chicago Mercantile Exchange (CME) live and feeder cattle futures slipped on Monday as boxed beef prices retreated and consumer demand fell, Reuters reported, citing traders. Wholesale boxed beef prices have slid as industry players closely monitor consumer spending habits amid evidence that inflation-hit Americans are reducing their spending on pricier cuts of beef such as steak, which could be weighing on cattle futures. Choice boxed beef prices slid by 35 cents to $304.57 per hundredweight and select cuts of beef fell by $2.03 to $292.14 per hundredweight, according to US Department of Agriculture data published on Monday afternoon. CME October live cattle futures ended down 0.425 cent at 177.225 cents per pound. October feeder cattle ended down 0.125 cent at 239 cents per pound. "My theory is that the US consumer has been so beat up by inflation, especially the middle to lower income consumer, that they're actively trading down, and that's a major problem for the cattle ...

Source: The Cattle Site