By Christopher Walljasper
CHICAGO, July 29 (Reuters) – Chicago Mercantile Exchange reside cattle futures climbed on Friday, supported by strong beef costs which are prone to stay sturdy as retailers put together for Labor Day demand by the month of August.
“The retailer will have beef going into the meat case, and that’s going to keep the product market together,” mentioned Altin Kalo, economist at Steiner Consulting Group.
CME August reside cattle futures LCQ2 added 0.275 cents to 136.450 cents per lb, whereas the most-active October LCV2 contract climbed 0.400 cents to 142.225 cents.
Wholesale beef costs climbed, with alternative cuts including $1.47 to $269.24 per cwt, in accordance with the USDA, whereas choose cuts gained $1.44 to $242.25 per cwt.
Outside financial forces might strain beef demand, Kalo mentioned, although fewer market-ready cattle ought to underpin reside cattle futures.
“The talk of recession and slow down, that’s going to weigh on the market. But at the same time, we’re going to have fewer cattle to sell. At least for a minute here, it seems like this cattle market has a little more support, at least short term.”
CME feeder cattle futures firmed, with most-active September feeder cattle futures FCU2 gaining 1.350 cents to 181.550 cents per lb.
Meanwhile, CME lean hog futures climbed on Friday, supported by sturdy cash costs which have lifted each close by and the most-active October contracts.
“In the fall, we’re going to have higher slaughter numbers, seasonally, but for a minute here, the strength in the hog market and the product market has surprised people and supported the front end,” mentioned Kalo.
The CME Lean Hog Index .IHX, a two-day weighted common of cash hog costs, added 85 cents to $120.58 per cwt, its highest since June 21, 2021.
CME’s close by August lean hog futures LHQ2 firmed 1.525 cents to 120.65 cents per lb, whereas the most-active October hogs LHV2 gained 0.900 cents to 97.225 cents.
(Reporting by Christopher Walljasper; Editing by Devika Syamnath)
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