Mixed Performance For CME Cattle Futures As Dollar Recovers

Chicago Mercantile Exchange (CME) cattle futures exhibited a mixed performance on Wednesday, with live cattle futures showing slight gains while feeder cattle prices declined. The movement in futures markets was influenced by the recovering US dollar and ongoing concerns about the global economic outlook, according to market analysts.

The most-active October live cattle contract ended the day 0.225 cents higher at 179.275 cents per pound. This uptick came as the contract edged away from the lowest levels observed in nearly three months earlier in the week.

In contrast, CME feeder cattle futures faced downward pressure, with September feeders closing 1.675 cents lower at 238.900 cents per pound. This marks a continuation of the downtrend, as feeder cattle prices hover at levels not seen since December.

Traders noted that weakness in the Chicago grains futures markets provided some support for cattle prices. However, the overall sentiment remained cautious due to limited cash cattle trade and uncertainties in the global economic landscape.

In the cash cattle market, prices are expected to soften due to limited trading activity this week. Recent transactions included a trade in Iowa at approximately $193 per hundredweight (cwt) and another in Texas at $185 per cwt.

US Department of Agriculture data revealed that beef exports for June increased by nearly 1.8% compared to May but were down by nearly 2.4% from the previous year. Despite this annual decline, June’s export volumes were the highest of the year, which provided some relief from the bearish sentiment that has affected cattle futures since late last week, according to Karl Setzer, partner at Consus Ag Consulting.

“These cattle markets just keep going back and forth,” Setzer remarked.

Meanwhile, pork exports for June fell to a four-year low, primarily due to decreased demand from China. This decline contributed to a drop in CME October lean hog futures, which ended down 1.825 cents at 74.575 cents per pound.