CME cattle futures end mixed after two-day rebound
Tight cattle supplies and improved packer margins supported the market despite concerns regarding consumer demand for high-priced beef.
Chicago Mercantile Exchange (CME) live cattle futures showed mixed results on Wednesday, following two days of gains that followed multi-month lows, according to Mint.
The December live cattle contract settled at 218.975 cents per pound, an increase of 0.225 cent. Meanwhile, January feeder cattle futures rose by 1.125 cents to end at 327.800 cents per pound.
Beef packer margins saw an improvement to an estimated $66.65 per head on Wednesday, compared to a negative $21.05 per head recorded last week, per livestock marketing advisory service HedgersEdge.
Jim McCormick, chief operating officer at AgMarket, said the movement felt like a technical correction of an oversold market rather than a total shift. He noted that consumer demand will be vital during the holidays as people manage high inflation and expensive Christmas costs.
Lean hog futures finished mostly lower due to sluggish pork demand. While the December lean hog contract gained 0.225-cent to settle at 56.025 cents per pound, almost all other deferred contracts ended the day lower.