[caption id="attachment_4892" align="aligncenter" width="1014"]
File Photo[/caption]
Livestock futures in the U.S. closed lower on Monday (July 20, 2020), with traders saying meatpackers could work behind ready-made cattle on the market as a sign of a return after a procession last week.
Although slaughter rates have returned to pre-coronavirus levels, cattle remain heavier after backing up in feedlots when processing plants closed this spring due to COVID-19 outbreaks among meatpacking workers, said Don Roose, president of U.S. Commodities. The bigger cattle result in more boxed beef, he said.
“The reality is bigger supplies are here still,” Roose said. “Weights are still big in COVID uncertainty, so we pulled back.”
Estimates from the U.S. Department of Agriculture show 117,000 cattle slaughtered on Monday, up 1.7% from the same time a year ago.
Chicago Mercantile Exchange (CME) August live cattle futures settled down 1 cent at 102.275 cents per pound and October live cattle fell 0.5 cent to 106.375 cents.
CME August feeder cattle futures settled down 1.100 cents at 141.600 cents per pound.
Boxed beef prices have softened in recent weeks, signaling more supply as slaughter rates improve. But fears of a resurgence of coronavirus outbreaks among consumers dampen traders’ confidence in consistent demand.
Prices for choice cuts of boxed beef on Monday afternoon gained $1.45 to $201.92 per cwt and select cuts added $0.81 to $191.12 per cwt, according to the USDA.
Source: Online/SZK
Comment Now