By Julie Ingwersen
CHICAGO, Might 13 (Reuters) – U.S. stay cattle futures fell 2.5% on Thursday, following broad declines in grain and livestock markets that analysts attributed to fund-driven lengthy liquidation and technical promoting after latest highs.
“It appears it was a risk-off day all throughout the board … It was extra of a technical transfer and simply cash move, taking some danger off the desk,” mentioned Altin Kalo, economist at Steiner Consulting Group.
Chicago Mercantile Trade June stay cattle futures LCM1 settled down Three cents at 115.600 cents per pound whereas August LCQ1 ended down 2.925 cents at 119.400 cents.
Agency wholesale beef costs underpinned the market. Selection cuts had been up $1.70 on Thursday to $316.78 per hundredweight (cwt), the very best in almost a yr, whereas choose cuts fell $1.25 to $295.91 per cwt, in accordance with the U.S. Division of Agriculture.
“We’re two weeks earlier than Memorial Day, and beef out there is extraordinarily tight. A few of these worth ranges are usually not sustainable in the long run. However within the quick time period, (retailers) can’t afford to go with out, going into the largest beef consumption vacation of the yr,” Kalo mentioned.
CME feeder cattle futures closed modestly decrease, with losses restricted by a plunge in Chicago Board of Commerce corn futures Cv1 that tempered worries about the price of feed. COR/ August feeders FCQ1 settled down 0.025 cent at 150.500 cents per pound.
CME lean hog futures fell on technical promoting and lackluster weekly pork export gross sales. The USDA reported U.S. pork gross sales within the week to Might 6 at 14,745 tonnes, a three-week low. China booked 3,048 tonnes and shipped 12,344 tonnes. EXP/PRK
CME June hog futures LHM1 settled down 1.925 cents at 110.100 cents per pound.
(Reporting by Julie Ingwersen; Enhancing by Tom Hogue)
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