CHICAGO, Oct 21 (Reuters) – Chicago Mercantile Exchange cattle futures on Monday retreated from last week’s surge as traders ahead of Friday’s U.S. Department of Agriculture cattle feed report, analysts said.
Meanwhile, boxed beef prices remained strong amid strong consumer demand, a solid economic outlook and the start of wholesalers’ buying ahead of Thanksgiving and Christmas.
“Don’t make too much of it. We had a good rally for a while and the market has calmed down,” said Steiner Group economist Altin Kalo.
“Nobody knows what the cash business is going to be like this week, and they’re holding back until we get direction on where the business is going to develop,” he said.
Analysts said tight supply and stable high prices in cash markets also continued to support futures.
Futures also got a boost from strength in wholesale prices. Choice boxed beef cutouts rose $2.21 to $322.86 per hundredweight Monday afternoon, according to the U.S. Department of Agriculture. Select boxed beef prices rose $2.01 to $296.21 per cwt.
CME December live cattle were down 0.50 cents at 186.825 cents a pound, while November feeder cattle futures were down 1 cent at 246.60 cents a pound.
Analysts said strength in wholesale pork prices and increased buying from end users led the rise in hog futures. Pork cutout prices increased across the board following a week-long pattern of strength in wholesale prices.
CME December lean hog futures were up 0.45 cents at 78.275 cents a pound.
Traders said they were also holding positions ahead of the November presidential election and the Federal Reserve meeting.
(Reporting by Heather Schlitz; Editing by Taseem Zahid)