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CME cattle futures fall for a second straight session
Both live and feeder cattle declined after wholesale cash beef prices turned lower and profit taking followed earlier gains.
Chicago Mercantile Exchange cattle futures fell for a second straight session as traders shifted to profit taking and technical selling, following sharp gains earlier in the week. Reuters reported the move also coincided with wholesale cash beef prices turning lower.
Reuters said CME December live cattle settled down 0.225 cent at 223.550 cents per pound after the contract hit a three-week high on Tuesday. November feeder cattle ended down 0.925 cent at 334.875 cents per pound.
The report cited an increase in imported cattle supplies from Mexico in recent weeks that weighed on the feeder cattle market. It also noted analysts pointing to slow cash-market trade at Plains feedlots and limited packer bids in some areas, suggesting the next wave of sales could come at lower prices.
Doug Houghton of Brock Capital Management said, according to Reuters, that in the absence of positive cash-market news the pullback was likely driven by profit taking. Reuters also added that, despite the declines, both feeder and live cattle markets remain supported by generally strong consumer demand for beef.