Key Moments
- August feeder cattle futures on CME declined to 349.55 cents per pound as extreme heat and higher grain prices curbed feedlot demand.
- Meat packers remained unprofitable at a loss of $217.65 per head of cattle, though this narrowed from a $275.20 loss the prior day.
- CME October hog futures advanced to 88.125 cents per pound as the pork cutout value increased to $104.82 per cwt.
Feeder Cattle Slide on Weaker Cash Trade
Feeder cattle futures on the Chicago Mercantile Exchange (CME) declined on Tuesday as the cash cattle market softened, according to analysts cited by Reuters.
CME August feeder cattle futures dropped 2.45 cents to close at 349.55 cents per pound.
Karl Setzer, president of Consus Ag Consulting, noted that the feeder cattle market weakened as buyers showed reduced interest in placing cattle on feed lots during extremely hot weather, while grain prices rose on Monday.
The CME feeder cattle index price was quoted at $356.22.
Grain Futures Mixed on CBOT
On the Chicago Board of Trade (CBOT), soybean futures Sv1 retreated 3-1/2 cents to finish at $12.22-3/4 per bushel on Tuesday, giving back part of the gains after reaching multi-month highs in the previous session.
Corn futures inched higher, adding 2-1/4 cents to settle at $4.75-1/4 per bushel.
| Contract / Market | Move | Settlement |
|---|---|---|
| CME August feeder cattle | -2.45 cents | 349.55 cents/lb |
| CME feeder cattle index | N/A | $356.22 |
| CBOT soybeans Sv1 | -3-1/2 cents | $12.22-3/4 per bushel |
| CBOT corn | +2-1/4 cents | $4.75-1/4 per bushel |
Live Cattle Futures and Beef Prices
Live cattle futures were mixed. CME August live cattle futures settled 0.20 cent higher, while October live cattle futures slipped 0.075 cent to end at 223.225 cents per pound.
Boxed beef prices weakened. The US Department of Agriculture reported on Tuesday afternoon that choice cuts of beef fell $3.19 to $366.91 per hundredweight (cwt), while select cuts declined $1.22 to $354.23 per cwt.
| Beef Product | Price Change | Closing Price |
|---|---|---|
| Choice boxed beef | -$3.19 | $366.91 per cwt |
| Select boxed beef | -$1.22 | $354.23 per cwt |
Meat packers continued to operate at a loss on Tuesday, with margins at negative $217.65 per head of cattle. This represented an improvement from the previous day, when losses stood at $275.20 per head, according to livestock marketing advisory service HedgersEdge.com.
Hog Futures Edge Higher as Pork Cutout Rises
CME October hog futures strengthened, adding 0.40 cent to close at 88.125 cents per pound.
The CME’s Lean Hog Index, a two-day weighted average of cash hog prices, was last quoted at $96.16.
The US Department of Agriculture priced the pork carcass cutout late on Tuesday at $104.82 per cwt, up $1.72.
| Hog / Pork Metric | Move | Latest Value |
|---|---|---|
| CME October hog futures | +0.40 cent | 88.125 cents/lb |
| CME Lean Hog Index | N/A | $96.16 |
| Pork carcass cutout | +$1.72 | $104.82 per cwt |
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