Cattle futures dip over beef demand worries, hogs climb
USAgNet - 04/05/2024
The Chicago Mercantile Exchange witnessed a mixed day for livestock futures. Cattle futures took a hit, dropping to a two-month low amid concerns over beef demand. This follows recent news of avian influenza in dairy cattle, including a suspected human transmission, stirring market fears despite the lack of evidence that the virus affects humans through food. According to analysts, this decline was mainly driven by technical factors rather than the avian flu scare alone.
Live cattle futures saw a significant drop, with June contracts closing lower. Similarly, May feeder cattle futures also experienced a downturn, marking a more-than-two-month low before slightly recovering. This comes as beef prices begin to ease from recent peaks, with the choice boxed beef cutout price witnessing a decrease, indicating a potential softening in demand.
Conversely, lean hog futures found stronger footing, with June contracts hitting contract highs. This uptick is supported by favorable packer margins, robust pork exports, and sustained demand for pork products, illustrating a divergent trend in the livestock market.
As the market navigates through these fluctuations, attention remains focused on the impact of avian flu on beef demand and the resilience of pork demand in the face of global challenges. Investors and farmers alike are watching closely as these dynamics unfold, affecting pricing and market strategies in the agriculture sector.
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