Live cattle peak 4.5 years due to increased demand for cash and beef

CHICAGO, Nov. 24 (Reuters) – Chicago Mercantile Exchange (CME) live cattle futures rose for a sixth straight session on Wednesday, and the first-month contract hit its highest level in four and a half years, in a rising spot price market and strong demand for beef.

Most contracts posted contract life highs, extending a multi-session rally, amid rising beef imports from China and improving domestic demand as more and more more consumers are returning to restaurants and resuming their trips after nearly two years of COVID-19 restrictions.

Markets will be closed Thursday for the Thanksgiving holiday in the United States and the United States Department of Agriculture (USDA) will release a new week of US beef export sales data early Friday.

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Cash cattle offers in feedlot markets in the southern plains of the United States traded at higher prices this week, rising from $ 136 per cwt on Tuesday to $ 140 per cwt on Wednesday, the tradespeople. The bulk of sales in the region last week was $ 134.

CME’s most active live cattle contract in February gained 1.450 cents to close at 140.875 cents per pound. Spot December added 2,500 cents to close at 137,900 cents, the highest point for a first-month contract since April 2017.

CME feeder cattle also advanced on tight supplies. January futures closed 2.550 cents higher at 166.925 cents per pound, the highest for a one-month contract since January 2016.

CME lean hog futures ended mixed, with actively traded nearby contracts lifted by support for the fallout from the cattle futures rally.

December CME lean hogs rose 1.275 cents to 75.425 cents a pound, while February hogs rose 0.975 cents to close at 84.250 cents. Deferred month contracts were up to 0.950 cents lower.

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Report by Karl Plume; Editing by Amy Caren Daniel

Our Standards: The Thomson Reuters Trust Principles.

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