CME live cattle sink on long liquidation as beef rally falters
CHICAGO, June 20 (Reuters) - Chicago Mercantile Exchange live cattle surrendered early gains on Friday and slumped to a 2-1/2 week low on long liquidation and profit-taking following recent all-time highs and as surging beef prices showed signs of topping out, traders said.
Position squaring ahead of the U.S. Department of Agriculture's monthly Cattle on Feed report, released after the close, also contributed weakness.
The market had been underpinned by rallying beef prices before choice beef slipped on Friday.
Demand for beef is expected to wane following a series of holidays when beef consumption typically rises, including Father's Day and the upcoming U.S. Independence Day holiday.
Benchmark CME August live cattle settled 1.850 cents lower at 209.825 cents per pound, the lowest close since June 3.
"You did see the big run-up in choice box beef slow down a little bit today. As we draw closer to the 4th of July, you're gonna have the idea that that's gonna cool off a little bit more," said Matthew Wiegand, broker with FuturesOne.
The choice boxed beef cutout value fell $3.29 per cwt on Friday to $390.50 after gaining $28.71 since June 6, according to USDA data. The select cutout was up $2.36 at $376.95 per cwt on Friday.
After the close, the USDA reported that the U.S. supply of cattle on feed as of June 1 was down 1% from a year earlier, in line with trade estimates, while May placements were down 8%, a larger-than-expected drop.
CME feeder cattle followed live cattle lower, surrendering early gains that were tied to the ongoing suspension of imports from Mexico over concerns about New World screwworm south of the border.
The USDA on Wednesday announced new plans to combat the pest as screwworm flies have been moving northward in Mexico.
August feeder cattle ended down 1.725 cents at 302.450 cents per pound.
CME lean hog futures ended higher, with actively-traded August up 0.450 cent at 112.450 cents.
(Reporting by Karl Plume; Editing by Alan Barona)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
an hour ago
- Hindustan Times
Kroger closing 60 stores across US: What shoppers need to know
Grocery chain Kroger announced it will close 60 stores across the United States over the next 18 months, representing about 5% of its 1,239 Kroger-branded locations operating in 16 states. The Cincinnati-based company disclosed the decision in a recent regulatory filing. Kroger will close 60 stores across the United States over the next 18 months.(REUTERS) "In the first quarter, Kroger recognized an impairment charge of $100 million related to the planned closing of approximately 60 stores over the next 18 months. As a result of these store closures, Kroger expects a modest financial benefit," the company said. Kroger said employees at affected stores will be offered positions at other nearby locations. While the company did not release a full list of affected locations, WAFF reported that the Kroger store at 1707 W. University Drive in McKinney, Texas, will be among those shutting down. "Unfortunately, we have made the difficult decision to close our McKinney store located at 1707 W. University Dr.," Kroger said in a statement to WAFF. 'This closure is part of a larger company-wide decision to run more efficiently and ensure the long-term health of our business.' Also Read: Kroger under fire for 'Lazy' Juneteenth cakes Store Closures Follow Modest Sales Decline The announcement comes shortly after Kroger reported its first-quarter earnings, with sales falling slightly to $45.1 billion, compared to $45.3 billion during the same quarter last year. Despite the decline, Chairman and CEO Ron Sargent said the company made 'solid progress' in several key areas. 'Kroger delivered solid first quarter results, with strong sales led by pharmacy, eCommerce and fresh. We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience,' Ron Sargent said in a statement. 'Our commitment to driving growth in our core business and moving with speed positions us well for the future. We are confident in our ability to build on our momentum, deliver value for customers, invest in associates and generate attractive returns for shareholders.'
Mint
4 hours ago
- Mint
CME live cattle sink on long liquidation as beef rally falters
CHICAGO, June 20 (Reuters) - Chicago Mercantile Exchange live cattle surrendered early gains on Friday and slumped to a 2-1/2 week low on long liquidation and profit-taking following recent all-time highs and as surging beef prices showed signs of topping out, traders said. Position squaring ahead of the U.S. Department of Agriculture's monthly Cattle on Feed report, released after the close, also contributed weakness. The market had been underpinned by rallying beef prices before choice beef slipped on Friday. Demand for beef is expected to wane following a series of holidays when beef consumption typically rises, including Father's Day and the upcoming U.S. Independence Day holiday. Benchmark CME August live cattle settled 1.850 cents lower at 209.825 cents per pound, the lowest close since June 3. "You did see the big run-up in choice box beef slow down a little bit today. As we draw closer to the 4th of July, you're gonna have the idea that that's gonna cool off a little bit more," said Matthew Wiegand, broker with FuturesOne. The choice boxed beef cutout value fell $3.29 per cwt on Friday to $390.50 after gaining $28.71 since June 6, according to USDA data. The select cutout was up $2.36 at $376.95 per cwt on Friday. After the close, the USDA reported that the U.S. supply of cattle on feed as of June 1 was down 1% from a year earlier, in line with trade estimates, while May placements were down 8%, a larger-than-expected drop. CME feeder cattle followed live cattle lower, surrendering early gains that were tied to the ongoing suspension of imports from Mexico over concerns about New World screwworm south of the border. The USDA on Wednesday announced new plans to combat the pest as screwworm flies have been moving northward in Mexico. August feeder cattle ended down 1.725 cents at 302.450 cents per pound. CME lean hog futures ended higher, with actively-traded August up 0.450 cent at 112.450 cents. (Reporting by Karl Plume; Editing by Alan Barona)
Mint
5 hours ago
- Mint
Wall Street choppy, oil dips as US holds back from Mideast military action
NEW YORK (Reuters) -Major Wall Street indexes closed lower on Friday while oil prices fell after U.S. President Donald Trump held back from immediate military action in the Israel-Iran conflict. All eyes remained trained on the Middle East one week after an initial Israeli assault drew Iranian retaliation. The U.S. imposed Iran-related sanctions a day after Trump said he might take two weeks to decide on further action. According to preliminary data, the S&P 500 lost 0.21%, while the Nasdaq Composite shed 0.49%. The Dow Jones Industrial Average, however, rose 38.47 points, or 0.09%, to 42,210.13. Stocks had been broadly positive at the open, and dipped in and out of negative territory during the session. Global benchmark Brent crude futures fell 2.3% to settle at $77.01 a barrel, but gained 3.6% in the week. Front-month U.S. crude - which did not settle on Thursday due to a U.S. holiday and expires on Friday - ended down 0.28% at $74.93, with a weekly gain of 2.7%. [O/R] "Investors are a little bit nervous about buying stocks right in front of this situation and, more specifically, right in front of this weekend," said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey. The new sanctions target entities, individuals and vessels providing Iran with defence machinery, and were seen as a sign of a diplomatic approach from the Trump administration. "However, while Israel and Iran carry on pounding away at each other, there can always be an unintended action that escalates the conflict and touches upon oil infrastructure," PVM analyst John Evans said. European foreign ministers urged Iran to engage with the U.S. over its nuclear programme after high-level talks in Geneva about a potential new nuclear deal ended with little sign of progress. Europe's main bourses [.EU] had ended their session a touch higher, following similar gains across Asia. MSCI's gauge of stocks across the globe fell 0.01% on the day. Gains on Hong Kong's Hang Seng, and South Korea's Kospi linked to newly elected President Lee Jae Myung's stimulus, had boosted Asian shares during that session. Federal Reserve policymakers made their first public comments since Chair Jerome Powell said on Wednesday that borrowing costs were likely to fall this year, but that he expects "meaningful" inflation ahead as Trump's tariffs raise prices for consumers. The close split between governors on how to manage the risks was in full view as Governor Christopher Waller said the central bank should consider cutting as soon as the next meeting, while the Richmond Fed's Tom Barkin said there was no urgency to cut. Powell had also cautioned on Wednesday against holding on too strongly to the forecasts. Treasury yields fell after Waller's comments, and as concerns about the Middle East conflict supported demand for safe haven bonds. The yield on benchmark 10-year notes fell 2 basis points to 4.375%, from 4.395% late on Wednesday. Demand rose for the U.S. dollar, pushing the greenback to a three-week high against the yen. The dollar rose 0.03% against a basket of currencies including the yen and the euro , with the euro up 0.3% at $1.1528. The index is poised to rise 0.6% this week. Prices for gold, another traditional refuge, fell 0.13% to $3,365.91 and were poised for a weekly loss. (Reporting by Isla Binnie in New York, additional reporting by Caroline Valetkevitch, Karen Brettel and Georgina McCartney, Editing by Louise Heavens, Rod Nickel and Marguerita Choy)
