CHICAGO, Sept 8 (Reuters) – Chicago Mercantile Exchange live and feeder cattle futures turned higher on Tuesday on a bout of short covering in a correction from the previous week’s downturn.
CME October live cattle settled 4.075 cents higher at 217.025 cents per pound. CME October feeder cattle rose 5.3 cents to 325.45 cents per pound.
A slew of bearish news, including U.S. President Donald Trump’s announcement that he would ease beef tariffs and the re-opening of the U.S.-Mexico border to cattle imports, have largely been factored into the market, analysts said.
“We’re getting back to the fundamental side of the cattle complex,” said Karl Setzer, partner at Consus Ag Consulting, emphasizing that the live cattle supply remains relatively low.
Though Labor Day marked the end of the summer grilling season, demand has remained relatively strong as retailers prepare for fall, a season where people often cook roasts.
Industry experts are continuing to assess consumer demand for beef as rising costs pressured pocketbooks, though last week’s stronger-than-expected jobs report provided assurance.
Consumers often shy away from purchasing beef when feeling financially stressed, as beef is typically one of the priciest protein options in grocery stores and restaurants.
The U.S.-Canada trade war hasn’t had a substantive impact on cattle or hog futures, with industry players believing the spat between the two countries will be short-lived.
The U.S. Department of Agriculture priced choice cuts of boxed beef at $376.17 per hundredweight, down 73 cents from the previous day, and select cuts rose $5.15 to $355.87 per hundredweight.
The USDA reported wholesale pork carcass values at $100.17 per hundredweight, up $7.31 from a day earlier.
Though China has continued culling their hog herd, analysts said it hasn’t caused a slowdown in demand.
The most actively traded October lean hog contract settled 1.95 cents higher at 84.25 cents per pound after trading on both sides of unchanged.
(Reporting by Heather Schlitz; Editing by Shailesh Kuber)
