CME cattle finish higher, USDA data seen as neutral
By Renee Hickman
CHICAGO, Sept 20 (Reuters) -Chicago Mercantile Exchange live cattle and feeder cattle futuresended higher on Friday as traders awaitedthe release of a U.S. Department of Agriculture Cattle on Feed report.
October live cattle LCV24 settled up 2.500 cents at 182.475 cents per pound, reaching highs not seen since Aug. 2.
October feeder cattle futures FCV24 ended up 0.125 cent at 243.900 cents per pound.
The USDA's monthly report, issued after trading ended,showed cattle and calves on feed for the slaughter market in the United States totaling 11.2 million head on Sept. 1, slightly above a year earlierand close to trade expectations for a 0.9% increase.
Placements of cattle in feedlots during August totaled 1.98 million head, 1% below 2023 and in line with analysts' expectations. Marketings of fed cattle during August totaled 1.82 million head, about 4% below 2023 and near expectations for a 3.4% decline.
"It was pretty much what people had dialed in," said Cassie Fish, analyst and author of The Beef blog.
The U.S. cattle herd this year dropped to its lowest level in decades. However, Fish noted there continue to be more cattle on feed than a year ago, which she tied to the low price of corn used for feed.
"They're feeding cattle a lot more days on feed," said Fish. She said the actual slaughter weight for steers released by the USDA on Thursday was 941 pounds, a new high for 2024.
Meanwhile, choice boxed beef prices rose by 63cents to $300.19 per hundredweight and select cuts of boxed beef rose by 33cents to $288.59 per hundredweight, according to USDA data on Friday.
CME October lean hog futures LHV24 ended down 0.025 cent at 82.225 cents per pound.
Reporting by Renee Hickman; Editing by Mohammed Safi Shamsi
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