Feeder cattle rise on technical buying and weaker corn prices
CME•CME feeder cattle futures rose on Thursday, supported by technical buying, tight supplies and lower corn prices, while live cattle futures were flat to mostly higher. January feeder cattle settled 3.875 cents higher at 331.675 cents per pound.
1. Cattle futures firm
CME feeder cattle futures gained on Thursday as technical buying, tight supplies and lower feed corn prices supported the market. Expectations for steady to possibly higher cash cattle prices at U.S. Plains feedlots also lent support after two weeks of sharp declines.
2. Demand concerns persist
Traders remained concerned about beef demand amid high inflation and historically high prices ahead of the Thanksgiving and Christmas holidays. Beef packer margins were estimated at $45.25 per head on Thursday, compared with a loss of $19.15 per head the previous week.
3. Hogs remain under pressure
Lean hog futures finished mixed as heavy supplies and weak pork demand weighed on prices. The pork carcass cutout value fell 20 cents to $69.14 per hundredweight, 15 cents above a low reached the previous week.
