LIVESTOCK-U.S. live cattle futures set nine-year low on weak cash prices, big supply
Tom Polansek / Reuters
September 9, 2019 / 4:49 PM
CHICAGO, Sept 9 (Reuters) - Front-month live cattle futures fell to a nine-year low on the Chicago Mercantile Exchange on Monday under pressure from weak cash prices and large supplies.
Cash cattle are expected to trade around $98 per cwt this week in Texas and Kansas, down from $100 last week and $103 two weeks ago, according to traders.
Cattle futures and cash prices tumbled after a fire at a Tyson Foods Inc slaughterhouse in Holcomb, Kansas, last month removed a key buyer from the market.
“The packers are pretty much in control of the cash market and they just continue to dial it down,” said Dennis Smith, commodity broker for Archer Financial Services in Chicago.
Tyson and other meat companies have been processing more cattle at other plants, reducing the impact of the fire on total U.S. slaughtering. The packers killed an estimated 115,000 cattle on Monday, compared with 119,000 a year ago.
There is still a negative tone in the cash market because of large supplies, traders said.
“No one has any optimism regarding cash,” one Chicago-based trader said.
CME October live cattle futures ended down 0.675 cent at 94.200 cents per pound and set a contract low. The contract also hit its cheapest price on a continuous chart of front-month cattle futures since 2010.
Monday was the first day of the five-session roll for funds tracking Standard & Poor’s Goldman Sachs Commodity Index...