Cattle Futures Rise on Stronger Cash Market

Cattle futures rose on the Chicago Mercantile Exchange (CME) on Thursday due to a firmer tone in the cash cattle market and lower corn prices, according to Reuters.

Doug Houghton, an analyst at Brock Associates, noted that feedlots are still holding out for higher prices, but added that the weakness in beef cutout values would be a negative factor. The recovery of slaughtering operations after recent disruptions caused by an immigration crackdown also contributed to the increase in cattle futures.

The US Department of Agriculture reported that meatpackers slaughtered 109,000 cattle on Thursday, up from 90,000 head a week earlier. Meatpackers made profits of $126.45 per head of cattle, down from $130.65 on Wednesday and $89.55 a week ago.

In contrast, lean hog futures fell as poor pork demand and technical pressure took their toll. CME December lean hog futures closed down 0.500 cent at 68.925 cents per pound.