U.S. livestock: CME cattle tick lower in thin pre-holiday trade

Chicago | Reuters – Chicago Mercantile Exchange live and feeder cattle futures were little changed but ended slightly lower on Wednesday amid thin trade ahead of Christmas, analysts said.

Many traders have exited out of their positions ahead of Christmas and the New Year market holidays.

CME February live cattle LCG26 settled 1.45 cents lower at 228.55 cents per pound. March feeder cattle FCH26 ended 0.20 cent lower at 338.80 cents per pound.

Choice cuts of beef fell 98 cents to $354.79 per hundredweight, according to USDA data as of Wednesday morning. Select cuts fell $4.56 to $345.03 per cwt.

In the new year, traders will continue to closely assess consumer demand for beef. Consumers have reported feeling stretched thin as the cost of living rises and could pull back on purchasing beef, which is generally the priciest protein.

Facing intense frustration from voters over rising everyday costs, President Donald Trump declared this fall that beef was too expensive and ranchers must lower cattle prices. The price of beef was “higher than we want it, but it’s going to be coming down soon,” Trump said.

A tight supply of cattle and the continued closure of the U.S.-Mexico border to cattle imports has kept a bottom on prices.

CME benchmark February lean hog futures LHG26 fell 0.925 cent to 85.05 cents per pound.

Wholesale pork cutout prices were lower. The USDA reported on Wednesday morning that pork carcasses were down $2.70 to $93.99 per cwt, with ham and belly prices also falling.