Chicago Mercantile Exchange (CME) live cattle futures experienced a fourth consecutive session of decline on Friday as traders awaited the release of the U.S. Department of Agriculture’s monthly Cattle on Feed report. The report was anticipated to reveal increased placements of cattle into feedlots during February compared to the previous year, contributing to market uncertainty and downward pressure on futures prices. CME April live cattle futures settled down at 187.500 cents per pound, while benchmark June cattle closed lower at 182.900 cents. Additionally, May feeder cattle tumbled to 253.775 cents per pound. The USDA’s report confirmed a larger-than-expected rise in cattle placements, with February feedlot placements reaching 1.890 million head, marking a 10% increase from the previous year. Factors such as an additional “leap year” day in February and adverse weather conditions in January were cited as potential contributors to the surge in placements. Despite the USDA report aligning with market expectations for total cattle on feed as of March 1, live cattle futures faced additional pressure from cooling wholesale beef prices and rising average cattle weights. In contrast, CME lean hog futures closed mostly higher, with benchmark June hogs consolidating after a recent decline. The USDA reported an increase in the pork carcass cutout price late Friday, providing some support to hog futures amidst market fluctuations.
CME Live Cattle Futures Decline Ahead of USDA Feedlot Data Release