CME update: cattle futures sink as demand contracts

US live cattle futures fell on 14 July for a second straight session, dragged down by weak wholesale beef prices and worries about consumer demand.
calendar icon 15 July 2020
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Reuters reports that the falling numbers can also be attributed to uncertainty about the health of the US economy.

CME August live cattle futures settled down 0.850 cent at 98.800 cents per pound and October fell 1.100 cents to finish at 103.100 cents.

"There is this persistent concern about the economy that is playing into these markets," said Altin Kalo, agricultural economist for Steiner Consulting. Noting that the CME October and December contracts fell the hardest on [14 July], Kalo added, "That is somewhat telling that the market is concerned about demand going into the fall."

Cash cattle traded at $95 per cwt in Texas and Kansas, the US Department of Agriculture said, generally steady with last week and a disappointment to traders expecting higher prices this week.

"Some of the cash markets are not that great," Kalo said.

Prices for choice cuts of boxed beef on Tuesday afternoon fell $2.34 to $200.92 per cwt and select cuts fell $1.03 to $190.85 per cwt, according to the USDA.

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