CHICAGO, Sept. 7 (Reuters) – Chicago Mercantile Exchange live cattle futures hit their three-month low on Tuesday as demand for beef slows, leaving beef producers with ample supply as the Demand from packers is weakening, traders said.
“Packers are bought for long distances – they have a lot of inventory,” said Scott Varilek, broker at Kooima Kooima Varilek Trading Inc.
October CME live cattle gained 1.050 cents to 123.750 cents a pound after hitting 123.675 cents, its lowest price since June 9.
October feeder cattle fell 2.425 cents to 160.050 cents per pound, hitting their lowest level since July 21 at 159.150 cents.
Live October cattle are approaching the contract’s 200-day moving average, after falling below its 100-day moving average on Friday.
Beef prices have fallen, with choice cuts of canned beef down $ 1.23 to $ 335.19 per cwt (cwt), while select cuts have fallen from $ 2.23 to 301.90 $ per quintal, the US Department of Agriculture said.
Beef packers’ margins were around $ 904.75 per head of cattle, up from $ 923.10 on Friday and $ 945.95 a week earlier, according to livestock marketing consulting service HedgesEdge.com.
Markets briefly reacted positively to news that Chinese beef importers had suspended exports from the main Brazilian supplier due to two cases of mad cow disease, although the gains were wiped out after the country said the he would continue to shop in anticipation of a rapid recovery in trade.
CME lean pork futures ended lower with the most active October contract standing at 1.475 cents to 88.100 cents per pound.
The CME Lean Hog Index, a two-day weighted average of spot prices, fell to $ 100.06 per hundredweight, its lowest since April 2. (Report by Christopher Walljasper; edited by Shailesh Kuber)