CME update: cattle futures rise in line with US beef prices

 Reuters reports that US beef prices typically rise heading into the Labour Day holiday. Don Roose, president of broker US Commodities told Reuters that there is a general feeling the market has bottomed out after recent volatility.

Prices for choice cuts of boxed beef rose by $1.15 to $208.35 per cwt, while select cuts increased by $2.74 to $196.67 per cwt, according to USDA data.

The coronavirus pandemic prompted consumers to hoard meat this spring while meatpackers like JBS USA and Tyson Foods temporarily shut slaughterhouses to contain outbreaks among workers. The plant closures in April tanked prices for cattle.

Cash cattle prices are expected to rise by $1 to $2 per cwt this week, Roose said.

"We're trying to move higher," he said.

CME October live cattle rose 1.15 cents to end at 108.30 cents per pound. September feeder cattle jumped 1.225 cents to 146.625 cents per pound.

Traders on Wednesday 12 August will review monthly USDA data for updates on meat supplies and demand and check data on crops used for livestock feed.

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Source: Reuters