CME live cattle futuers rise to 10-week high on firm cash prices

By Reuters News

By Karl Plume

CHICAGO, Oct 16 (Reuters) - Chicago Mercantile Exchange live cattle futures climbed to a 10-week high on Friday on firm cash market prices and tightening beef supplies, while feeder cattle futures were steady to higher as feed corn prices fell.

Tight supplies of cattle continued to underpin futures, along with strong consumer demand for beef amid tightening supplies after the USDA last week cut its US production outlook for this year and next.

"We have a domestic supply shortfall that we're still facing," said Mike Zuzolo, president of Global Commodity Analytics.

CME December live cattle reached their highest level since August 7 and ended the day 1.100 cents higher at 228.350 cents per pound. November feeders peaked at a three-month high before settling 0.050 cent lower at 341.900 cents pound.

Limited cash cattle trades in the central and northern Plains this week were above last week's prices, while bids in the southern Plains were steady to higher than a week ago, traders said.

Wholesale cash beef values were mixed on Friday, holding within a recent tight range. The USDA said the choice boxed beef cutout fell $1.67 on Friday to $372.31 per hundredweight, while the select cutout rose 43 cents to $353.05 per cwt.

Beef packer margins narrowed on Friday but remained firmly in the black. The average margin dipped to an estimated $70.90 per head, down from $99.65 per head a day earlier and $72.55 per head a week ago, according to livestock marketing advisory service HedgersEdge.

CME hog futures rose for the second session in a row on Friday in a short-covering and technical-buying recovery after hitting contract lows earlier this week on slumping pork prices and weak cash hog values.

December lean hogs ended 0.350 cent higher at 66.925 cents per pound.

The wholesale cash pork cutout value jumped $3.00 to finish the week at $80.55 per cwt, rebounding from the lowest level since April 2023 on Thursday, according to USDA data.

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