Commodities
Home›Commodities›Energy›Cattle futures rise on technical buying and higher who…
Cattle futures rise on technical buying and higher wholesale beef prices
Wholesale choice boxed beef climbed to $378.93 per hundredweight and beef packer margins widened to $108.85 per head.
Chicago Mercantile Exchange cattle futures rose Tuesday, supported by a pickup in wholesale beef prices and chart based buying that pushed prices higher out of a recent tight range, according to Reuters. The rally was also backed by expectations that beef demand would stay resilient amid stronger equities, a decline in crude oil prices, and reduced expectations for a Federal Reserve rate hike later this month. Rich Nelson, chief strategist at Allendale Inc., linked the move to the stock market and the perception that rates may not rise at the end of the month. Wholesale beef prices increased sharply on Monday and again by midday Tuesday. The USDA cited the choice boxed beef cutout at $378.93 per hundredweight on Tuesday, up 67 cents from a day earlier, while HedgersEdge said the average beef packer margin expanded to $108.85 per head, up from $59.65 on Monday.
CME December live cattle settled up 4.125 cents at 224.100 cents per pound, marking a three week high.
Latest closeWTI crude $89.70 ▼1.6%