US cattle set contract high following Brazil stops exports to China

Published 2023년 2월 24일

Tridge summary

CME live cattle futures reached a contract high due to expectations of increased US beef exports to China, following Brazil's suspension of beef exports to China due to a mad cow disease case. Thinly traded February live cattle futures settled up 0.250 cent at 165.150 cents per pound, and most-active April live cattle finished up 0.250 cent at 165.325 cents per pound. This increase is also attributed to a reduction in the US cattle herd due to drought. CME March feeder cattle futures also saw an increase, supported by weak corn futures indicating cheaper feed costs.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Chicago Mercantile Exchange (CME) live cattle futures reached a contract high on Thursday amid hopes that Chinese importers will buy more US beef after rival supplier Brazil suspended shipments to China, Reuters reported, citing analysts. Brazil said it would halt beef exports to China, the main destination for its overseas shipments, after confirming a case of mad cow disease. Brazilian Agriculture Minister Carlos Favaro vowed to treat the case with the utmost transparency, adding he hopes the suspension can be lifted next month. In 2021, Brazil suspended exports to China for more than three months after finding two cases of the disease. "Using history as a guide, the US is going to be looking at extra beef exports to China for the next three months and potentially longer if more cases pop up," said Jim Gerlach, president of broker A/C Trading in Indiana. The United States does not plan to restrict imports of Brazilian beef, the US Department of Agriculture said in an email. ...

Source: Thepigsite