Cattle futures rally on technical buying, higher beef prices
DBA•Cattle futures rose on Tuesday as wholesale beef prices climbed and technical buying lifted prices above chart resistance. December live cattle settled at 224.100 cents per pound, while November feeder cattle closed at 338.275 cents per pound.
1. Cattle futures rise
Chicago Mercantile Exchange cattle futures rallied as wholesale beef prices rose and chart-based buying pushed prices out of a recent narrow range. December live cattle gained 4.125 cents to settle at a three-week high of 224.100 cents per pound, while November feeder cattle rose 8.150 cents to 338.275 cents per pound, their highest level since mid-July.
2. Beef prices and margins
The U.S. Department of Agriculture quoted choice boxed beef at $378.93 per hundredweight on Tuesday, up 67 cents from a day earlier. The average beef packer margin expanded to $108.85 per head from $59.65 on Monday. Lean hog futures ended mostly weaker, with December contracts down 0.575 cents at 70.375 cents per pound.
