On April 15, 2023, live and feeder cattle futures on the Chicago Mercantile Exchange experienced a notable uptick, driven by robust boxed beef prices and a rebound in equities. Analysts indicated that these factors have provided much-needed support for cattle prices amid a week of market fluctuations.

Cattle Futures See Positive Movement

CME June live cattle futures rose by 0.725 cents, closing at 199.8 cents per pound. Similarly, May feeder cattle futures gained 1.575 cents, finishing at 282.525 cents per pound. According to Altin Kalo, an economist at Steiner Group, the market is stabilizing after a volatile period, largely influenced by external economic conditions.

Factors Influencing Market Stability

Several elements contributed to this market stability:

• Trade Policy Relief: Recent discussions around potential changes in auto tariffs by U.S. President Donald Trump have eased some trade tensions.
• Strong Bank Earnings: Impressive financial results from banks have bolstered equities.
• Steady U.S. Government Bonds and Dollar: These financial indicators remained stable, further supporting positive market sentiment.

Beef Prices Adjusting

In the beef sector, there were slight declines in boxed beef prices. As per the U.S. Department of Agriculture:

• Choice cuts fell by 20 cents, now priced at $335.43 per hundredweight (cwt).
• Select cuts decreased by 61 cents, now at $315.24 per cwt.

Analysts noted that the seasonal demand for meat is on the rise as retailers prepare for grilling season, driving prices upward.

Anticipation Ahead of USDA Report

Short covering in anticipation of the USDA’s forthcoming cattle on feed report has also contributed to the price rebound. A recent Reuters poll indicates that the number of cattle on feed as of April 1 is projected to be 1.8% lower than the same time last year.

Lean Hog Futures Follow Suit

Additionally, CME June lean hog futures saw a slight increase of 0.05 cent, settling at 95.175 cents per pound. This rise in hog futures is attributed to the same stabilizing factors influencing cattle prices. The USDA reported pork carcass prices at $91.73 per cwt, reflecting a decrease of $1.05 from the previous day.

As the market continues to evolve, stakeholders will be keeping a close eye on upcoming reports and market trends that could shape the future of cattle and hog pricing.