Livestock CME mixed cattle futures, lean hogs lower on signs of cooling economy in the United States

Published Jun 21, 2024

Tridge summary

Chicago Mercantile Exchange (CME) beef cattle futures had mixed results on Thursday, with nearby live cattle contracts increasing due to spot market strength and steady consumer demand, while feeder cattle futures and front-month live cattle contracts declined, mirroring seasonal trends. This decline is often seen as Americans switch to cheaper meat options like ground beef and sausages ahead of the summer grilling season. Despite this, wholesale beef prices have strengthened, according to the U.S. Department of Agriculture. Traders are now looking forward to the USDA's upcoming beef and pork export data, while also considering potential impacts of the U.S. economy's potential slowdown on meat demand. Additionally, CME lean hog futures experienced a decline due to forecasted weakness in pork exports, with concerns over the trade dispute between China and the European Union.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Chicago Mercantile Exchange (CME) beef cattle futures were mixed on Thursday, with nearby live cattle contracts rising amid signs of strength in the spot market and consumer demand holding firm, according to analysts. market analysts. Feeder cattle futures and front-month live cattle contracts fell. The decline follows seasonal patterns typically seen heading into the summer grilling season, when Americans tend to switch to cheaper ground beef and sausages instead of more expensive steaks, said Don Roose, president of U.S. Food and Agriculture Organization. Commodities in West Des Moines, Iowa. “Cattle futures should be in a seasonal fan right now, and start drifting lower,” Roose said. “Still, it is surprising that consumer demand has remained so strong.” Wholesale beef prices strengthened on Thursday. The U.S. Department of Agriculture reported that boxed beef cut prices for both select and select cuts rose. Traders said they would be keeping a close eye on the latest USDA beef ...
Source: Agromeat
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