Cattle futures on the Chicago Mercantile Exchange experienced a setback on Monday, retracting from the prior week’s gains as traders adjusted their positions in anticipation of the upcoming U.S. Department of Agriculture Cattle on Feed report, analysts noted. Despite this pullback, demand for boxed beef remained robust, supported by a strong economic outlook and early holiday purchases by wholesalers ahead of Thanksgiving and Christmas. Economist Altin Kalo from the Steiner Group urged not to overinterpret the market fluctuations, emphasizing that the market was merely stabilizing after a previous rally. The uncertainty surrounding the cash trade further contributed to the cautious market stance.
Tight cattle supplies and stable to rising cash market prices continued to underpin futures, bolstered by wholesale price strength. USDA data reported that the choice boxed beef cutout had increased by $2.21 to $322.86 per hundredweight, while select boxed beef prices went up by $2.01 to $296.21 per cwt. CME December live cattle futures closed at 186.825 cents per pound, down 0.50 cent, while November feeder cattle futures decreased by 1 cent to 246.60 cents per pound.
In contrast, hog futures saw an upswing, driven by the strengthening wholesale pork prices and increased buying activity from end users. The pork cutout values advanced, continuing a recent trend of firming prices in the wholesale market, leading to a rise of 0.45 cent for CME December lean hog futures, which ended at 78.275 cents per pound.
Traders were also cautiously positioning themselves ahead of November’s presidential election and the Federal Reserve meeting, adding another layer of market complexity. The developments signal a mixed trading environment, with market participants closely monitoring both domestic and global factors.
Original Story https://www.livemint.com/news/cme-cattle-futures-pull-back-as-rally-fades-11729549692716.html
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