U.S. livestock: Cattle futures rise, hogs fall

Chicago | Reuters — Chicago Mercantile Exchange feeder cattle futures firmed on Thursday, rebounding from a sharp decline a day earlier on support from weakness in the corn market.

Live cattle futures also closed higher but hog contracts weakened, extending a sell-off that started on Wednesday as traders said the market remained technically overbought.

Analysts were expecting a U.S. Agriculture Department report on Friday afternoon to show the number of cattle on feed as of June 1 was 96.6 per cent of the year-earlier total. May placements were pegged at 101.7 per cent of May 2022 and May marketings at 101.6 per cent.

The August CME feeder cattle contract gained 2.95 cents to 230.675 cents/lb., rising above the low end of its 20-day Bollinger range (all figures US$).

CME July hogs fell 2.9 cents, to 91.85 cents/lb. Most-active August hogs shed 2.8 cents, to 89.975 cents/lb. The August contract turned lower after hitting technical resistance at its 100-day moving average.

USDA priced the pork carcass cutout at $96.50 per cwt on Thursday afternoon, 42 cents higher than Wednesday.

CME’s benchmark August live cattle contract settled up 1.4 cents at 171.15 cents/lb., breaking through its 20-day moving average before hitting resistance as it neared its 10-day moving average.

The U.S. Department of Agriculture priced choice cuts of beef at $334.47 per hundredweight (cwt) on Thursday afternoon, 22 cents higher than a day earlier. Select cuts were 45 cents lower at $303.80/cwt.

Profit margins for meat packers rose to $165.30 per head of cattle, up from $142.48 on Wednesday and $145.85 a week ago, according to livestock marketing advisory service HedgersEdge.

— Mark Weinraub is a Reuters commodities correspondent in Chicago.