U.S. Cattle Futures End Session Mixed After Dip in Cash Prices
29 August 2016 - 8:28PM
Dow Jones News
By Kelsey Gee
CHICAGO--U.S. cattle futures ended the session mixed on Monday,
buoyed by short-covering in the thinly-traded August contract, with
just days before expiration.
August live-cattle rose 0.4 cent, or 0.4%, to $1.1075 a pound,
after tumbling 2.8% to the lowest settlement in a month on Friday.
Most-active October cattle declined 1.275 cents to $1.05075 a
pound. September feeder-cattle futures fell 0.775 cent to $1.3915 a
pound.
Retailers and U.S. meatpackers have lowered their bids for
available meat and livestock supplies in recent weeks, in
anticipation of an uptick in production later this summer and fall.
This has spurred deflation of many food commodities at the grocery
store and on some restaurant menus, which has been a boon for
consumers.
The U.S. is on track this year to post the longest stretch of
falling food prices in more than 50 years, a streak that has at the
same time put a financial strain on farmers, grocery stores and
restaurants.
Feedyard operators last week fetched from $1.14 to $1.15 for
most of their available cattle, reflecting a three cent drop from
the previous sales, as traders braced for the uptick in cattle
numbers ahead.
The hog market also ended the session mixed, as market
participants search for clearer signs of demand for pork products
at discounted price levels.
October futures rose 0.05 cent, or 0.1%, to 61.375 cents a
pound, after a 1% decline last week. December hog futures shed 0.3
cent to 56.325 cents a pound.
-Write to Kelsey Gee at kelsey.gee@wsj.com
(END) Dow Jones Newswires
August 29, 2016 15:13 ET (19:13 GMT)
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