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CME update: live cattle futures inch up despite slowed slaughter pace

09 November 2020

US live cattle futures gained slightly on 6 November after a week of range trading.

Reuters reports that Chicago Mercantile Exchange December live cattle futures settled 0.300 cent higher at 108.650 cents per pound.

CME feeder cattle futures gained 0.525 cents to end at 135.925 cents per pound.

For the week, live cattle futures gained .3 percent, while feeder cattle futures added 1.44 percent.
"The market’s in a trading range, both cash and futures," said Larry Hicks, broker at CattleHedging.com.

 

"It’s getting ready to breakout, one way or another. My bias is that it’s going to break to the downside in November before it recovers."

Boxed beef prices, which had been strengthening all week, were mixed, with choice cuts up $1.77 cents at $214.32 per cwt on Friday afternoon, but select cuts trimmed back 48 cents to$198.49, according to USDA data.

Meanwhile, cattle slaughter slipped to 109,000 head, down 4.4 percent compared to a week earlier and 7.6 percent lower than a year ago.

"I still think we need to get some cattle through. I don’t think we’ve finished backing up," said Hicks.

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Source: Reuters



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