US live cattle futures sag

Published 2023년 1월 18일

Tridge summary

CME live cattle futures experienced a decline on Tuesday due to weakness from feeder cattle futures and long liquidation, influenced by commodity funds' large net long position. February and April live cattle futures settled at 157.0 cents and 160.100 cents per pound, respectively. The drop was also attributed to rising corn costs for feed. In contrast, lean hog futures ended mixed, with a decrease in spot February but an increase in April futures and deferred contracts. This was following a significant reduction in the net long position held by managed funds, priming the market for a rebound. Additionally, wholesale pork prices fell to their lowest in two years, with the pork cutout reaching $77.44 per cwt.

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

Original content

Chicago Mercantile Exchange (CME) live cattle futures fell on Tuesday, on spillover weakness from feeder cattle futures and long liquidation as market players responded to a hefty net long position held by commodity funds, Reuters reported, citing analysts. CME February live cattle settled down 0.725 cent at 157.0 cents per pound and April futures fell 0.800 cent to 160.100 cents. March feeder cattle futures tumbled 1.575 cents to finish at 181.300 cents per pound, pressured by rising costs for corn, the main US cattle feed grain. Chicago Board of Trade March corn hit a two-month top on follow-through strength from last week's bullish US government supply/demand reports. "Any time you get the grain market moving higher like this, I think you are going to get a weaker cattle market, and to some extent, the hog market as well," said Sherman Newlin, an analyst with Risk Management Commodities. Others attributed the selling to fund-driven long liquidation. Data from the US Commodity ...

Source: Thepigsite