Chicago Mercantile Exchange (CME) cattle futures rebounded on Thursday in a technical-buying bounce after three sessions of declines and as a stock market recovery supported hopes for continued strong beef demand, reported Reuters.
The market was also supported by good beef packer margins and a softening of the US dollar after a push to 18-month highs.
Gains, however, were held in check as traders awaited direction from cash market prices from feedlots in the Plains.
"We're starting to see ideas that cash trades can develop quickly, and that helps kind of push things forward. We've had the dollar down a little bit here, and that may help a little bit," said Matt Wiegand, risk management consultant for FuturesOne.
"And you had a little bit better outside market influence today that helped break the tie in some cases and keep the buying going," he said.
CME December live cattle ended the day 2.125 cents higher at 227.250 cents per pound after peaking at a 10-week high of 227.900 cents. November feeders gained 3.500 cents to settle at 341.950 cents pound, but hit overhead technical resistance at its 200-day moving average.
Average beef packer margins expanded to an estimated $99.65 per head on Thursday, up from $85.00 per head a day earlier and $83.75 per head a week ago, according to livestock marketing advisory service HedgersEdge.
CME lean hogs posted more contract lows on Thursday but short covering and technical buying later lifted the market to a higher close.
Hog prices, however, remain anchored by sluggish demand and weak cash pork prices.
The wholesale cash pork cutout value fell $1.90 on Thursday to $77.55 per hundredweight, the lowest level since April 2023, according to USDA data.