By Julie Ingwersen
CHICAGO, June 15 (Reuters) – Chicago Mercantile Change (CME) reside cattle futures rose greater than 2% on Tuesday, setting a two-month excessive as deferred costs for corn, the primary feed grain for cattle, continued to fall, merchants stated.
CME benchmark August reside cattle futures LCQ1 settled up 2.625 cents at 123.900 cents per pound after reaching 124.125 cents, the contract’s highest since notching a life-of-contract high on April 8.
Feeder cattle futures hit a three-week excessive. August feeders FCQ1 ended up 2.225 cents to settle at 156.825 cents per pound.
“Low cost feed costs help the cattle market, whereas the hog market is decrease on a fifth day of decrease (pork) product costs,” Arlan Suderman, StoneX chief commodities economist, wrote in a word to shoppers.
Tuesday’s increased shut in cattle futures got here regardless of one other every day setback in wholesale beef costs, which have cooled this month following a three-month run-up. The selection boxed beef cutout worth fell $1.04 on Tuesday to $334.43 per cwt, and choose cuts dropped $5.13 to $298.28 per cwt, based on the U.S. Division of Agriculture (USDA).
CME lean hog futures closed narrowly blended. July lean hog futures LHN1 settled up 0.275 cent at 118.500 cents per pound whereas August futures LHQ1 fell 0.100 cent to finish at 114.700 cents.
Worries about softening demand for U.S. pork hung over the market.
“U.S. pork exports have began to gradual in latest weeks, particularly to China,” Karl Setzer, a commodity threat analyst with AgriVisor, wrote in a shopper word.
In the meantime, on Capitol Hill, U.S. Agriculture Secretary Tom threw his help behind a proposal to determine a particular investigator to handle issues about anti-competitive practices within the meat and poultry industries.
The proposed workplace would have a group of investigators, with subpoena energy, devoted to stopping and addressing anticompetitive practices and imposing antitrust legal guidelines in meatpacking.
“I believe it is a good proposal,” Vilsack stated at a congressional price range listening to. “I believe it is a part of what must be finished.”
(Reporting by Julie Ingwersen; Modifying by Richard Chang)
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