Source: Farmtario 

Chicago Mercantile Exchange (CME) cattle futures rose on Tuesday due to technical trading and expectations of increased packer buying during the shortened holiday week. Weakness in corn prices, driven by fast planting progress and dry weather forecasts in the U.S. Corn Belt, also supported cattle futures. Last week’s USDA cattle on feed report, which met market expectations, indicated 11.6 million cattle on feed as of May 1, a 1% decrease from the previous year. April placements were down due to tight feeder cattle inventory and high domestic feeder values.

Cash market prices are expected to remain steady or increase, with producers in the southern U.S. Plains asking for $190 per hundredweight (cwt) and over $192 per cwt in the Corn Belt. CME August live cattle closed up 0.700 cent at 181.825 cents per pound, while June live cattle rose 0.85 cent to 184.550 cents per pound. August feeder cattle increased by 4.375 cents to 264.600 cents per pound. Meanwhile, July hog futures fell by 0.700 cent to 96.525 cents per pound, despite some support from higher pork cutout prices.

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