CHICAGO, Aug 11 (Reuters) - Chicago Mercantile Exchange live cattle futures advanced on Tuesday, supported by increasing beef prices, traders said.
Beef prices usually rise heading into Labor Day, and there is a feeling the market has bottomed after recent volatility, said Don Roose, president of Iowa-based broker U.S. Commodities.
Prices for choice cuts of boxed beef rose by $1.15 to $208.35 per cwt, while select cuts increased by $2.74 to $196.67 per cwt, according to the U.S. Department of Agriculture.
The coronavirus pandemic prompted consumers to hoard meat this spring while meatpackers like JBS USA and Tyson Foods temporarily shut slaughterhouses to contain outbreaks among workers. The plant closures in April tanked prices for cattle.
Cash cattle prices are expected to rise by $1 to $2 per cwt this week, Roose said.
“We’re trying to move higher,” he said.
CME October live cattle rose 1.15 cents to end at 108.30 cents per pound. September feeder cattle jumped 1.225 cents to 146.625 cents per pound.
CME October lean hog futures settled 2.00 cents lower at 51.825 cents per pound. The market retreated after setting a two-month high on Monday, traders said.
Traders on Wednesday will review monthly USDA data for updates on meat supplies and demand and check data on crops used for livestock feed.
Supplies of U.S. hogs remain too large after producers expanded their herds in recent years, analysts said. Farmers hope that China, the world’s top pork consumer, further ramps up imports from the United States.
China is continuing to buy American goods, particularly commodities, under its Phase 1 trade deal with the United States, despite rising tensions, top White House economic adviser Larry Kudlow said.
China’s WH Group, owner of Smithfield Foods, said it expects U.S. pork exports to China to fall in the second half, as the pandemic hit volumes handled at U.S. processing plants and pushed up prices. (Reporting by Tom Polansek in Chicago; Editing by Tom Brown)
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