U.S. feeder cattle, lean hogs pressured by limit-up grains
Christopher Walljasper, Reuters
via Financial Post (Canada) - Mar 31, 2021
CHICAGO — U.S. feeder cattle futures dropped on Wednesday, reacting to limit-up gains in corn and soybean futures that will translate to higher livestock feed costs as grain users compete for tight supplies, traders said.
On the Chicago Mercantile Exchange, the most-active May feeder cattle finished 2.800 lower at 149.400 cents.
“Corn was limit up. Cattle were up a little bit, but not enough to allow you to pay that much for the feeders, so they took it out of the feeders,” said Alan Brugler, president of Brugler Marketing.
Gains in live cattle were driven by consumer demand for beef, as boxed beef prices climb and cash trade strengthens.
Benchmark CME June live cattle futures ended 0.675 cent higher at 122.900 cents per pound, gaining seven of the last eight sessions.
Market-ready cattle traded in the Plains cash markets last week at around $115-$116 per cwt, up $1 from the previous week, and reached $118 this week, traders said...