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CME cattle futures end higher on technicals, bargain buying

By Reuters News

By Karl Plume

CHICAGO, Nov 10 (Reuters) - Chicago Mercantile Exchange cattle futures were firm for a second conscutive day on Tuesday, as technical buying and bargain buying buoyed the market after a nine-session slide that had dragged prices to multi-month lows last week.

Stronger beef packer margins offered the market an additional lift. As well as news this week that Tyson Foods would restart a second shift at its Amarillo, Texas, beef plant by next summer, following a string of beef plant curtailments and closures across the industry, .

"After two weeks of significant price declines, we just needed a little profit taking here," said Rich Nelson, chief commodity analyst at Allendale.

The average packer margin on Tuesday was estimated at $55.35 per head, up from a negative $2.45 on Monday and a negative $34.50 per head last week, according to livestock marketing advisory service HedgersEdge.

CME December live cattle settled 3.000 cents higher at 219.200 cents per pound. The benchmark contract touched its lowest level since December 2 on Friday. January feeder cattle futures ended 2.500 cents higher at 326.675 cents per pound.

Lean hog futures finished the day narrowly mixed following a short-covering and technical bounce on Monday that lifted prices from contract lows. But the hog market remained anchored by weak pork demand and slumping pork prices.

The closely followed pork carcass cutout value touched its lowest point since December 2020 last week, according to USDA data. After two days of modest increases, it fell by $1.29 on Tuesday to $69.52 per hundredweight.

CME December lean hog futures ended down 0.075 cent at 55.875 cents per pound.

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