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306369

LIVESTOCK-U.S. cattle futures rebound amid boost in wholesale market

By Christopher Walljasper

CHICAGO, Oct 13 (Reuters) - U.S. live cattle futures rebounded on Tuesday, correcting after the biggest drop since June 30, amid a stronger wholesale market, traders said.

Lean hogs stepped back for a second day, reflecting a softer cash market, while feeder cattle followed the cash market higher.

Chicago Mercantile Exchange December live cattle futures added 0.400 cent to 111.225 cents per pound.

CME January feeder cattle climbed 1.275 cents to 136.825 cents per pound.

"I think a little bit of the correction in cattle today - and that we didn’t make up all that was lost yesterday - tends to reflect that the wholesale market is still in pretty good shape here," said Altin Kalo, an economist with Steiner Consulting Group.

Daily cattle slaughter remained strong, with 120,000 head slaughtered, in line with yesterday and a year ago. Packer margins fell to $220.90, but remain elevated compared to pre-COVID-19 levels, according to Denver-based livestock marketing advisory service HedgersEdge.com LLC.

Boxed beef prices were mixed, with choice cuts trimming $0.70 to $213.92 and select cuts increasing $1.09 to $201.43.

Meanwhile, lean hog futures dropped for a second consecutive trading day, reflecting a softening cash market and heavier animal weights heading for slaughter in coming months.

"Weights are starting to move higher," said Kalo. "Is that going to put some pressure on producers, where they’ll have to be more aggressive in marketing hogs? And if that’s the case, if they become more aggressive, that will put some pressure on the cash side."

CME October lean hogs fell 0.375 cent to 77.8 cents per pound. Most-active December hogs settled 0.475 cent lower at 66.150 cents per pound. (Reporting by Christopher Walljasper in Chicago; Editing by Aurora Ellis)

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