Chicago Mercantile Exchange live cattle futures landed in deeply bearish territory on Monday, hit by plentiful supplies and seasonally tepid wholesale beef demand, said traders.
Fund liquidation accelerated market losses, they said.
August ended 2.700 cents per pound lower at 112.750 cents per pound, and October closed down 2.975 cents to 111.125 cents.
Both contracts finished below their respective 10-day moving averages of 113.743 and 113.170 cents.
More cattle are for sale than last week and packers are thought to have purchased enough cattle in advance for later delivery, said KIS Futures vice president Lane Broadbent regarding Monday’s market selloff.
Increased cattle supplies, and competition from abundant pork and chicken, present challenges for beef heading into the early-September U.S. Labor Day holiday, he said.
Roughly 1,600 animals are listed for sale at Wednesday’s Fed Cattle Exchange. Livestock there last week brought $116.000 cwt.
Source: Reuters via Drovers