CHICAGO, July 5 (Reuters) - Chicago Mercantile Exchange live cattle futures fell on Tuesday, following broad declines in commodities and Wall Street equities tied to fears of a global economic recession, traders said.
“It’s the economy. You’ve got the fears of going into a recession,” said Don Roose, president of Iowa-based U.S. Commodities. “So goes the equity market, so goes cattle,” Roose said, noting that economic slumps tend to reduce consumer demand for high-priced cuts of beef.
CME’s benchmark August live cattle contract settled down 1.675 cents at 132.925 cents per pound, retreating back below its 50-day moving average near 134.5 cents.
August feeder cattle fell 1.800 cents to settle at 172.700 cents per pound, shrugging off support from a plunge in corn futures that should signal cheaper feed costs.
Cash cattle markets were quiet on Tuesday. Market-ready cattle traded last week at $137 to $138 per cwt in southern U.S. Plains feedlot markets and as high as $151 per cwt further north in Nebraska, according to the U.S. Department of Agriculture (USDA).
CME lean hog futures closed mostly higher on Tuesday, bucking the lower trend in cattle, grains and other commodities.
August hogs settled up 2.975 cents at 105.950 cents per pound.
The USDA quoted the pork carcass cutout value at $114.48 per cwt on Tuesday afternoon, up $5.73 from Friday. PRK-MAN-CARCS
In Europe, African swine fever has spread to Lower Saxony, Germany’s most important pig-rearing region, dealing a blow to the sector with major markets such as China likely to maintain import bans for years to come, analysts said on Monday.
Meanwhile, China’s state planner urged top hog breeders to ensure steady supply, it said in a statement late on Monday, after prices surged in recent months. (Reporting by Julie Ingwersen)
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