Cattle Futures Rebound on Grain Pullback and Cash Support
Cattle futures on the Chicago Mercantile Exchange (CME) rose sharply on Thursday due to a combination of factors. The US Department of Agriculture (USDA) reported weaker boxed beef values, with choice cuts priced at $377.30 per hundredweight and select at $351.00 per hundredweight, both down from the previous day.
Additionally, wholesale pork carcass values declined by $2.77 to $92.85 per hundredweight, pressuring October lean hog futures, which slipped 0.325 cents lower to 83.45 cents per pound on the CME.
The rebound in cattle prices was attributed to a sharp retreat in grain prices and a firmer cash cattle market, according to Reuters. Market participants noted that cattle futures had been under heavy selling pressure in recent weeks, leaving them oversold, which contributed to a wave of short covering that propelled prices higher during the session.
October live cattle on the CME ended the day 4.125 cents higher at 214.30 cents per pound, while October feeder cattle gained 6.725 cents to close at 321.10 cents per pound.