Chicago, March 21 (Reuters) – Chicago Mercantile Exchange came back to a technical dip on Friday, as several days of rallies sent most of the contracts at a lifetime high levels during the week.
CM June Live Cattle declined by 2.250 cents in 202.775 cents per pound, but still reached a lifetime high level for a day continuously.
CME April feeder cattle settled at 3.475 cents 284.975 cents per pound, reaching a high level of contract on the fourth day in a row.
Carl Setter, partner of Consus AG Consulting, said, “Cattle futures began to be really overbott, and it really turned upside down.”
The condition of high winds and icy storms in Canasus and Nebraska closed the first road in the week, including the interstate 80 in Nebraska, which slowed down the slaughter of cattle, said analysts.
Conflicts on consumer demand were also weighed in cattle markets, as the markets assessed statements in the first week by Federal Reserve President Jerome Powell that President Donald Trump’s initial policies, including comprehensive import duty, have tilted the US economy towards slow growth and at least temporarily high inflation.
In bulk values, the US Department of Agriculture reported the choice of boxing beef on Friday afternoon, which increased to $ 2.61 $ 325.45 per hundredweight (CWT), and selected cuts increased from $ 0.26 to $ 309.62.
Traders were also waiting for the release on the USDA’s monthly cattle, which was released after the closure of the trading.
The USDA report showed that in February, the number of cattle on the US feed lot was 18% below the previous year.
According to a Reuters Poll of analysts, the average trade estimate was that it would be 14%below.
Meanwhile, CME’s April Lean Hog Contract rose on a technical bounce, according to setter, after falling for three consecutive days.
It settled at 86.125 cents per pound at 0.575 percent.
(Reporting by Renee Hikman; Editing by Allen Barona)
