CME update: cattle futures stabilise amid further fall in beef prices
US live cattle futures stabilised on 8 June, reversing last week’s falls.
Reuters reports that US beef prices continue to weaken. The market is expected to remain under pressure as beef production continues to recover from COVID-19-related disruptions in April and May.
Meat processors slaughtered an estimated 117,000 cattle on 8 June, up from 110,000 a week earlier and down from 119,000 a year ago, according to the USDA.
Wholesale beef prices have dropped from historic highs as production has improved. The choice boxed beef cutout, an indicator of wholesale prices, fell to $256.33 per cwt on Monday, down $5.15 from Friday, when cutout dropped $10, according to the USDA.
Chicago Mercantile Exchange (CME) June live cattle futures settled up 0.225 cent at 94.125 cents per pound. The benchmark August contract rose 0.150 cents to 96.325 cents, after hitting a one-month low 5 June.
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