January 27, 2021

CME live cattle futures up thanks to increase slaughter rates

Live cattle futures on the Chicago Mercantile Exchange (CME) ended higher on technical buying and as slaughter rates in the US rose, alleviating worries of cattle supply backups, Reuters reported.

Processing rates for cattle have gone up following worker shortages caused by the COVID-19 pandemic.

The US Department of Agriculture (USDA) projected cattle slaughter on 26 January, 2022 at 118,000 head for a second straight day, which brought the the week-to-date volume to 351,000 head. This was higher compared to the 345,000 head at the same point last week, but lower than the 353,000 head a year ago based on USDA data.

Live cattle futures on CME April closed 1.800 cents higher at 141.900 cents per pound.

Also on the rise was March contract feeder cattle futures, which ended at 160.800 cents per pound, up 0.950 cent.

-      Reuters