CHICAGO — Chicago Mercantile Exchange live cattle futures rose on Tuesday on bargain-buying, a day after the October contract hit a 3-1/2 week low, traders said.
A setback in prices for corn, a key feedgrain, added support.
But rallies were capped by broad declines in commodities, including crude oil, and Wall Street equity markets tied to fears that rising U.S. and European interest rates will slow the economy, curbing consumer demand for fuel, beef and other goods.
Benchmark CME October live cattle futures settled up 0.925 cent at 143.825 cents per lb, a day after sliding to 142.650, the contract’s lowest since Aug. 3. October feeder cattle rose 2.200 cents to close at 183.275 cents.
Traders were waiting to see where cash cattle would trade. Next week will be shortened by the Sept. 5 Labor Day holiday, a factor that could limit meat packers’ immediate needs for cattle. But feedlots in Kansas and Texas were asking $144 per hundredweight (cwt) for market-ready cattle, traders said, up about $2 from last week.
In the U.S. wholesale beef market, choice cuts fell $3.25 to $259.79 per cwt, according to the U.S. Department of Agriculture. Select cuts fell $3.07 to $239.68 per cwt.
CME lean hog futures rose for a second straight session. Most-active October lean hogs settled up 1.350 cents at 93.600 cents per pound and December hogs ended up 0.900 cent at 85.500 cents per pound.
Wholesale pork prices declined. The USDA reported the pork carcass value at $102.16 per cwt on Tuesday afternoon, down 41 cents from Monday. (Reporting by Julie Ingwersen)