CHICAGO, Sept 19 (Reuters) – Chicago Mercantile Change reside cattle futures closed increased on Friday for a second straight day, supported by tight U.S. cattle provides and power in Wall Avenue fairness markets that signaled continued sturdy demand for beef, brokers mentioned.
CME October reside cattle futures settled up 1.200 cents at 233.575 cents per pound and December reside cattle ended up 1.575 cents at 235.725 cents.
October feeder cattle rose 2.375 cents to finish at 354.100 cents per pound.
Month-to-month feedlot knowledge from the U.S. Division of Agriculture, launched after the shut of the market, got here in near commerce expectations.
The USDA reported the variety of cattle in U.S. feedlots as of September 1 at 11.1 million head, down 1.05% from a 12 months earlier, whereas analysts surveyed by Reuters forward of the report on common had anticipated a barely smaller drop of 0.9%.
The USDA mentioned August feedlot placements had been 90% of a 12 months in the past, beneath the common analyst estimate of 91%, and August marketings had been 86% of a 12 months in the past, beneath analyst expectations for 87.2%.
The USDA’s report “doesn’t change the dynamics with what has been occurring within the cattle marketplace for months now,” mentioned Dan Norcini, an unbiased dealer.
“We’re nonetheless producing rather a lot much less beef, and I simply do not see that altering any time quickly, based mostly on these numbers,” Norcini mentioned.
Wholesale beef costs continued to retreat from near-record highs set in early September because the summer time grilling season wound down. The USDA priced selection cuts of beef at $382.05 per hundredweight (cwt) on Friday afternoon, down $3.76 from Thursday.
Nonetheless, a robust week for Wall Avenue’s foremost indexes bodes properly for shopper beef demand, Norcini mentioned. For the week, the S&P 500 rose 1.2%, the Nasdaq climbed 2.2% and the Dow added 1.05%.
“The inventory market continues to be sturdy. Individuals are making good cash on the excessive finish, and they’re going to pay up for beef,” Norcini mentioned.
CME lean hog futures closed principally increased on Friday, however the most-active December contract inched decrease.
October hogs settled up 0.500 cent at 97.975 cents per pound whereas December hogs ended down 0.075 cent at 87.625 cents.
The USDA priced the hog carcass cutout at $112.05 per cwt on Friday afternoon, up 10 cents from Thursday.
(Reporting by Julie Ingwersen; Modifying by Mohammed Safi Shamsi)
