Chicago | Reuters – Chicago Mercantile Exchange cattle futures ended the day lower on Monday as market participants sought to take profits after live cattle futures hit a nearly three-month high in the previous session, traders said.
Lean pork futures also fell amid profit-taking after a recent strong rally in the futures market encountered fundamental resistance, traders said.
CME April live cattle futures LCJ24 settled up 1.40 cents at 182.350 cents a pound. March feeder cattle futures FCH24 ended down 2.050 cents at 242.750 cents a pound.
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CME hog futures ended mostly lower, with the benchmark April contract LHJ24 settling up 1.625 cents at 82.200 cents a pound.
The spot market started the week relatively stable, with feeder prices in the Oklahoma and Kansas regions ranging from a stable $178 per hundredweight (cwt) last week to $4 more per cwt, traders said.
The continued price rise is part of the domino effect caused by cold winter weather in mid-January that led to a decline in livestock weight, analysts said.
Traders said funds and investors are trying to adjust their positions in futures markets ahead of a flurry of government data reports scheduled for release on Thursday, including the US Department of Agriculture's (USDA) monthly supply and demand report.
“People want to see what USDA hog and cattle prices will be this year and what per capita consumption will be for beef and pork,” said Don Roose, president of US Commodities in West Des Moines, Iowa.
Wholesale beef prices were higher Monday afternoon, with select cuts at $293.48 per hundredweight, up 40 cents, while select cuts were up 30 cents at $283.77, according to USDA data per hundredweight increased.
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