Livestock-Cattle futures tick lower as demand falls

Chicago Mercantile Exchange live and feeder cattle futures fell on Friday as concerns over consumer demand for beef took center stage, analysts said.

U.S. consumer sentiment slumped in early August amid worries about rising costs of living because of the Middle East conflict, a survey showed on Friday.

The University of Michigan's Surveys of Consumers said its Consumer Sentiment Index dropped to 51 this month from 55.2 in July, after two straight months of improvement. Economists polled by Reuters had forecast the index would be at 54.5.

Gloomy consumer sentiment can reduce demand for beef, typically one of the priciest proteins available at restaurants and in grocery stores.

On Thursday, Tyson Foods said it will close or sell three of its beef plant and packaging operation sites, further shrinking its beef footprint as a historic U.S. cattle shortage deepened losses for the largest U.S. meatpacker.

CME October live cattle LCV26 futures ended 1.175 cents lower at 218.875 cents per pound. CME September feeder cattle futures FCU26 fell 2.65 cents to 334.55 cents per pound.

The U.S. Department of Agriculture on Friday priced choice cuts of beef at $375.30 per hundredweight, down 60 cents from the previous day. Select cuts rose $2 to $351.24 per hundredweight.

The USDA reported the pork cutout value at $99 per hundredweight, down 98 cents from a day earlier.

The actively traded October lean hog contract LHV26 settled 0.375 cent lower at 81.75 cents per pound.