Chicago Mercantile Exchange cattle futures saw a downturn on Wednesday as technical selling surged and concerns mounted over consumer demand for beef in light of an E. coli outbreak linked to McDonald’s Quarter Pounder burgers. The outbreak has affected 49 individuals, with ten hospitalized and one fatality reported, according to the U.S. Centers for Disease Control and Prevention. December live cattle futures declined by 0.25 cent to 187.875 cents per pound, while November feeder cattle futures fell 1.700 cents to 247.225 cents per pound. In contrast, December lean hog futures rose by 1.05 cents to 80.175 cents per pound due to technical buying, bolstered by persistently high wholesale prices.
The cattle market experienced a volatile trading session primarily driven by technical factors and position adjustments, noted Austin Schroeder, an analyst with Brugler Marketing & Management. While wholesale beef prices were mixed, the choice boxed beef cutout dropped by $2.55 to $321.41 per hundredweight, with select boxed beef prices increasing by $0.97 to $295.77 per cwt.
Despite reaching near summer highs in some live cattle contracts, the E. coli outbreak injected a layer of uncertainty into the market. The USDA is still investigating the ground beef used by McDonald’s but indicated that slivered onions might be the outbreak’s likely cause. This situation presents the possibility of a shift in consumer demand away from beef, although some might only pivot from McDonald’s specifically, as has been the trend in past outbreaks at major fast-food chains.
Overall, the cattle market remains in flux as it navigates these challenges, while the hog market benefits from favorable technical trends and price conditions.
Original Story https://www.livemint.com/news/cme-cattle-futures-fall-on-technical-trade-e-coli-outbreak-concerns-11729722221715.html
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