CME live cattle futures rebound from a sluggish week
CHICAGO, Aug 19 (Reuters) -Chicago Mercantile Exchange (CME) live cattle futures bounced back on Monday after a slow previous week, while feeder cattle futures dipped on corn's Chicago Board of Trade (CBOT)climb.
CME most-active October live cattle LCV24 closed up 0.725 cents at 179.025 cents per pound. Most-active October feeder cattle FCV24 finished 0.075 cents lower at 235.875 cents per pound.
Live cattle got a boost from short covering on Monday after sagging the prior Thursday and Friday, said independent livestock trader Dan Norcini. The bounce today was primarily a correction from live cattle's oversold condition on Thursday and Friday, said analysts.
Meanwhile feeder cattle took a hit from a rally in corn on Monday as the grain experienced its own rebound from multiyear lows the previous week.
Higher grain prices raise feeding costs for animals.
Traders also monitored the impact of a dry weather spell on corn and reports from the Pro Farmer crop tour, which began its journey across the Midwest on Monday.
CBOT September corn CU24 settled up 7-1/2 cents at $3.78 a bushel, while most-active December CZ24 corn ended up 7-3/4 cents at $4.00-1/4 a bushel.
The approach of Labor Day on September 2, the last major grilling holiday of the season, also weighed on the market, said analysts.
Norcini said many market participants are nervous about aggressively buying cattle at the moment, and will be monitoring Labor Day buying this week.
"People are thinking the demand for beef is simply not going to hold up in the economy," Norcini said.
CME October lean hog futures LHV24 ended down 1.725 cents at 76.800 cents per pound.
Reporting by Renee Hickman; Editing by Mohammed Safi Shamsi
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
