Live cattle hit lowest price since June under U.S. supply pressure
By Tom Polansek
CHICAGO, Oct 26 (Reuters) - U.S. live cattle futures fell on Monday, with the most-active contract touching its lowest price since June under pressure from a larger-than-expected number of cattle on feed in the United States, traders said.
The U.S. Department of Agriculture, in a monthly report issued after the markets closed on Friday, said 11.7 million cattle were in feedlots at the start of the month, up 3.8% from a year earlier and the highest Oct. 1 inventory since records began in 1996.
Analysts had expected an increase of about 3.2%.
The USDA on Friday also said the number of cattle placed into feedlots in September was up 105.9% from a year earlier, exceeding analysts' estimates for a 102.5% increase.
"They're putting a lot of cattle into feedlots at this time because there are some profit opportunities out there," said Brian Hoops, president of U.S. broker Midwest Market Solutions.
CME December live cattle futures fell 0.175 cent to 103.400 cents per pound and touched their lowest price since June 29. Deferred contracts finished higher.
January feeder cattle jumped 1.225 cents to 126.775 cents per pound. The contract bounced after falling last week to its lowest price since April, a broker said.
In the pork market, December lean hogs rose 0.725 cent to 67.750 cents per pound. The market recovered after touching its lowest price since Oct. 13. (Reporting by Tom Polansek in Chicago Editing by Matthew Lewis)
© Copyright Thomson Reuters 2020. Click For Restrictions - http://about.reuters.com/fulllegal.asp