live cattle futures

live cattle futures

June 21st, 2016

Chicago cattle prices bounced up from multi-year lows, on technical support, but the market remains under pressure thanks to ample beef supply, and sluggish US demand.

Prices for both live cattle, which are ready for slaughter, and feeder cattle, which are ready for fattening up on feedlots, are under pressure.

Live cattle prices hit a four-year low of 113.725 cents a pound on Monday, while feeder cattle hit a three-year low 134.250 cents a pound.

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October 3rd, 2012

Cattle futures prices fell for the first time in three sessions on signs of slowing U.S. demand for beef. Hog futures declined from a seven-week high.

Meatpackers processed 372,000 cattle in the first three days of this week, down 1.1 percent from the same period a week earlier, and down 5.8 percent from year earlier, U.S. Department of Agriculture data show. Wholesale-beef prices have dropped 2.1 percent this year, government data show.

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April 25th, 2012

Cattle Futures – The first U.S. case of mad cow disease in six years may not disrupt the nation’s corn and soybean exports because global demand for crops used as livestock feed is surging, said Roy Huckabay, an executive vice president at Chicago agriculture broker Linn Group.

“Mad cow will have little impact on domestic feed demand,” Huckabay said. “Drought in South America is boosting demand for U.S. soybeans and soybean meal. China is buying U.S. corn, and that is the tip of an iceberg of new demand. China will buy 10 million metric tons of corn this calendar year, up from 5 million currently on the export books.”

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April 24th, 2012

Cattle futures tumbled the most in 11 months in Chicago, and feeder-cattle prices fell by the exchange limit as a case of mad-cow disease was reported in the U.S. Corn, used in livestock feed, also slumped.

A case of mad-cow disease has been found in a dairy cow in central California, John Clifford, the USDA’s chief veterinarian, told reporters today in Washington. Its meat did not enter the food chain and the carcass will be destroyed, Clifford said. This is the fourth confirmed case of the brain- wasting disease in the U.S. cattle herd since the first was discovered in December 2003 in an animal that came from Canada.

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April 17th, 2012

Cattle Futures – The consumer backlash against a meat product made from leftovers and treated with chemicals is making a bad situation worse for Cargill Inc. and Tyson Foods Inc. (TSN) ahead of the beef industry’s peak sales period.

Kroger Co. (KR), the largest U.S. grocery-store chain, last month stopped buying ground beef containing what processors call lean, finely textured beef, while Wal-Mart Stores Inc. (WMT) said it would offer customers meat without the additive.

Lower demand for the product — dubbed “pink slime” by critics — has prompted Cargill, the biggest U.S. beef processor, to scale back output of the lean meat at four plants. Tyson says beef supply will decline. The companies, already dealing with higher cattle costs, may start labeling ground beef with the product as the industry tries to back shoppers’ confidence ahead of the U.S. summer grilling season.

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February 17th, 2012

Cattle futures rose to an all-time high for the 10th time this year as rising demand for U.S. beef tightens supply and increases costs for restaurants including Chipotle Mexican Grill Inc. (CMG) Feeder cattle also reached a record and hogs gained.

The U.S. cattle herd as of Jan. 1 was the smallest for that date since 1952, and beef exports surged 21 percent in 2011, government data show. The U.S. Department of Agriculture forecast a 4.1 percent drop in beef output in 2012, boosting the cost of the meat for consumers by as much as 5 percent this year, more than any other food group except seafood.

Global food prices in January rose by the most in 11 months, according to the United Nations. Retail beef last month was the most expensive ever, and wholesale prices through midday are up 14 percent in the past year, boosting costs for retailers including Whole Foods Market Inc. (WFM), the Austin, Texas-based owner of specialty supermarkets, and Ruth’s Hospitality Group Inc. (RUTH), operator of upscale steakhouses.

“Everyone wants to be bullish on cattle just because of the lower supplies,” Chad Henderson , a market analyst at Prime Agricultural Consultants Inc. in Brookfield, Wisconsin, said in a telephone interview. “That’s where all the bullish enthusiasm comes from.”

Cattle futures for April delivery rose 1 percent to close at $1.309 a pound at 1 p.m. on the Chicago Mercantile Exchange, after reaching $1.31275, the highest for a most-active contract since the commodity started trading on the CME in 1964. The price, up 3.2 percent this week, has gained 7.8 percent in 2012.

Feeder-cattle futures for March settlement gained 1 percent to $1.58425 a pound in Chicago, after reaching a record $1.5905. Feedlots buy year-old animals that weigh 500 pounds (227 kilograms) to 800 pounds, called feeders. The cattle are fattened on corn for about four to five months until they weigh about 1,200 pounds, when they are sold to meatpackers.

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