Chicago Mercantile Exchange live cattle futures fell for the second straight session on Tuesday, easing on follow-through technical selling in the wake of bearish government supply data released late on Friday, traders said.
Most-active CME December live cattle settled down 0.950 cent to 113.475 cents per pound while front-month October cattle were down 0.950 cent to 108.275 cents.
CME November feeder cattle declined 0.950 cents to 150.650 cents per pound.
Cattle futures had jumped to the highest levels in more than a month before the U.S. Department of Agriculture on Friday showed larger-than-expected placements of cattle on feed in August – data that portended more cattle available to beef packers early in 2018.
“We had a pretty good rally last week and the market was due for a short-term setback,” said Doane Advisory Services economist Dan Vaught.
Traders were waiting for deals to develop in U.S. Plains cash cattle markets after higher cash prices last week helped to buoy futures.
USDA said choice-grade wholesale beef prices were up $2.82 to $196.78 per cwt.
Pork in the wholesale market was down $1.01 to $72.49 while cash hogs in the top market of Iowa and southern Minnesota edged 4 cents lower to $47.78 per cwt, USDA said.
CME October lean hog futures fell to a contract low of 55.025 cents per pound, before settling at 55.250 cents, down 1.075 cents.
But most deferred contracts gained on short-covering, with most-active December hogs firming by 0.675 cent to 58.100 cents per pound.