Feeder cattle futures on the Chicago Mercantile Exchange (CME) ended higher on Friday, buoyed by strong cash cattle trade and pre-holiday positioning ahead of the U.S. Memorial Day weekend, according to market analysts cited by Reuters.
The CME’s most-active August feeder cattle contract settled up 0.600 cent at 300.375 cents per pound. In the live cattle segment, the nearby June contract rose 0.175 cent to finish at 215.800 cents per pound. However, the more heavily traded August live cattle contract slipped 0.050 cent to 210.450 cents.
Lean hog futures also retreated, with the most-active July contract falling 0.500 cent to close at 101.550 cents per pound.
Analysts said the cattle market was underpinned by robust cash cattle sales throughout the week. “Demand is still with us, underneath the market,” noted Don Roose, president of U.S. Commodities.
Traders are now focused on consumer demand through the long weekend, particularly meat sell-through rates at retail stores, which could influence short-term market direction.
Following the close of trading, the U.S. Department of Agriculture (USDA) released its monthly Cattle on Feed report. The data showed fewer cattle placed on feedlots in May than expected, though April placements exceeded forecasts. Roose described the report as “neutral bullish,” suggesting it could offer some continued support to the market.
Wholesale beef prices climbed on Friday. USDA data showed choice boxed beef cuts gaining $0.58 to reach $361.55 per hundredweight (cwt), while select cuts surged $2.37 to $351.32 per cwt.
In the pork market, wholesale values also advanced. The USDA reported the pork carcass cutout value rising $1.19 to $101.46 per cwt, with pork bellies up $1.64 to $144.71 per cwt.
Overall, strong consumer demand and favorable USDA data appear to be lending fundamental support to cattle futures heading into the summer grilling season.
