Feeder Cattle Futures Rebound from Lows Amid Profit-Taking
Feeder cattle futures rebounded on Thursday after hitting fresh lows not seen since early June due to profit-taking following a previous day's sell-off, according to analysts. Hot weather in the Midwest has made feeder cattle buyers reluctant to buy animals for feedlots in recent weeks, causing futures to decline.
The CME August feeder cattle futures rose 2.60 cents to finish at 343.775 cents per pound on Thursday. Meanwhile, grains used in feed trimmed their gains from the previous day. Soybean futures settled up 4-3/4 cents at $12.43-3/4 per bushel, and corn futures settled up 2 cents at $4.64 per bushel.
Live cattle futures dipped, with CME August live cattle settling 2.20 cents lower at 225.400. Boxed beef prices fell, with choice cuts of beef losing $0.63 to $362.87 per hundredweight (cwt), and select cuts falling $1.82 to $348.75 per cwt.
US Department of Agriculture's cattle on feed report is due out on Friday afternoon, causing some pre-report positioning among traders. Analyst Doug Houghton noted that there was interest among market players in whether the beef cow herd liquidation that has taken place in recent months is over, but drought conditions in the US Plains may have prevented expansion.