US: Live cattle futures fall on consumer demand questions on the CME

Published Aug 29, 2024

Tridge summary

CME live cattle futures fell due to a decrease in boxed beef cutout values ahead of the US Labor Day holiday, despite a heat wave affecting animal eating habits. The decline was attributed to weakness in wholesale beef prices. Feeder cattle futures ended mixed. Lean hog futures closed higher after a volatile session, driven by rising wholesale pork prices and consumer shifting to cheaper pork options due to inflation. The consumer confidence report showed an increase in confidence but doubts about continued payment for premium beef. The report also indicated a decrease in restaurant spending, which could lead to less demand for expensive beef cuts.

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 Wednesday as boxed beef cutout values turned lower ahead of the US Labor Day holiday on September 2, when many Americans light up their grills, Reuters reported, citing traders. Feeder cattle futures ended the day mixed. A heat wave across a large swath of the US offered some support to cattle futures, as the animals typically eat less and gain weight slower when the weather turn hot, traders said. Still, it was weakness in wholesale beef prices that weighed heavily on the cattle market, eroding gains from the previous day's rally. Choice boxed beef prices declined by $2.02 to $309.95 per hundredweight (cwt) and select cuts declined by 56 cents to $299.69 per cwt, US Department of Agriculture data showed on Wednesday morning. Most-active CME October live cattle closed down 0.775-cent at 178.625 cents per pound. Most-active CME October feeder cattle finished up 0.200-cent at 238.575 cents per pound. Meanwhile, lean hog ...

Source: The Cattle Site