LIVESTOCK-Technical Purchases and Strong Demand for Beef in the U.S. Boost CME Cattle
Band Tom Polansek
CHICAGO, October 6 (Reuters) – Technical buying and strong demand for U.S. beef pushed up Chicago Mercantile Exchange live and feeder cattle futures on Wednesday, traders said.
Livestock markets continue to rebound from recent losses that were technically exaggerated, analysts said.
October CME Live Cattle Futures of Month 1 LCV1 reached its highest price since Sept. 16 at 124,000 cents per pound and ended up 1 cent to 123.825 cents per pound. The most active December contract LCZ1 set 0.375 cents higher at 128.225 cents.
Most active feeder cattle in November FCX1 touched its highest price since September 24 and finished 1.250 cents firmer at 158.125 cents per pound.
Recent gains in live cattle and feeder cattle give traders some confidence that markets may have established near-term price lows, analysts said. Prices had fallen too low at a time when domestic and export demand for U.S. beef is firm, they said.
U.S. beef exports in August surpassed $ 1 billion for the first time amid record sales to China, new data from the U.S. Department of Agriculture shows. Total exports increased by about 21% in volume compared to last year in August.
“Obviously, breaking the billion dollar mark in a single month is a big milestone for American beef, and it isn’t possible unless a wide range of markets hits all the cylinders,” said Dan Halstrom, Managing Director of the US Meat Export Federation Business Group. .
Total US pork exports in August were up 3.6% in volume from a year ago, the USDA said.
CME pork futures, meanwhile, were weaker as the market continued to retreat from a two-month high reached last week, traders said.
October lean pigs LHV1 was 1.350 cents lower at 89.625 cents per pound. Most active lean pigs in December LHZ1 slipped 0.825 cents to close at 81.725 cents. Both contracts hit their lowest prices since September 27.
(Reporting by Tom Polansek in Chicago, editing by Shailesh Kuber)
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