April 28, 2021
US live cattle futures ease due to surging grain costs, lean hogs mixed
US live cattle futures eased as increased input costs possibly result in near-term cattle selling with producers resistant to purchasing higher feed costs, according to traders, Reuters reported.
June live cattle futures on the Chicago Mercantile Exchange (CME) ended 0.425 cent lower at 115.850 cents per pound.
Choice beef cutouts have climbed to US$5.79 per cwt to US$290.99 and select cuts US$5.18 up to US$279.53, reflecting high consumer demand.
Scott Varilek, broker at Kooima Kooima Varilek Trading Inc, said there is demand for beef but its not reaching the producer.
Feeder cattle futures ended mixed. August feeders on the CME dropped 0.225 cent to end at 150.075 cents per pound, but nearby contracts added amid volatile trade for Chicago Board of Trade corn futures after reaching a new eight-year high.
Lean hog futures ended mixed. The most-active June lean hogs on the CME eased 0.175 cents to close at 106.675 cents per pound, while the CME's lean hog index increased to its highest since October 2014 at US$107.17 per cwt. The CME lean hog index is a two-day weighted average of cash prices.