CHICAGO, May 16 (Reuters) – Chicago Mercantile Exchange live cattle and feeder cattle futures rebounded on Friday on short covering and technical trading after a selloff in the previous session, traders said.
Cattle futures have also been underpinned by strong boxed beef prices and a tight cattle supply. Futures prices set all-time highs earlier in the week after the U.S. suspended cattle imports from Mexico over an outbreak of New World screwworm in Mexican cattle.
CME August live cattle futures rose 0.9 cent to 206.75 cents per pound. August feeder cattle futures rose 1.775 cents to end at 297.60 cents per pound.
Consumer demand for beef and wholesale beef prices have stayed strong as the U.S. enters the height of grilling season. However, traders have voiced concerns that weakening consumer sentiment will weigh on futures.
The University of Michigan Survey of Consumers on Friday reported U.S. consumer sentiment slumped in May while one-year inflation expectations surged as households remained concerned about the economic impact of President Donald Trump’s aggressive and often erratic trade policy.
Choice cuts of boxed beef rose $3.18 to $353.08 per hundredweight as of Friday morning, while select cuts rose $3.86 to $343.04 per hundredweight, according to the U.S. Department of Agriculture data.
Cheaper corn prices, a common ingredient in cattle feed, also supported cattle futures.
In hogs, strong pork demand and seasonally tight hog numbers have supported prices, though technical trading ahead of the weekend added pressure to futures. CME lean hog June contract closed 0.375 cent lower to 100.325 cents per pound.
(Reporting by Heather Schlitz; Editing by Mohammed Safi Shamsi)
