CHICAGO, May 6 (Reuters) – Chicago Mercantile Exchange live cattle and feeder cattle futures crept higher on Tuesday as strong wholesale beef prices and a tight cattle supply compelled meatpackers to pay up for each head of cattle, lending support to the cash market and cattle futures, analysts said.
Hog futures ticked lower as nonexistent Chinese demand for U.S. pork amid the ongoing U.S.-China trade war continued to pressure prices.
CME June live cattle futures rose 0.025 cent to close at 213.675 cents per pound. August feeder cattle futures rose 0.3 cent to end at 299.20 cents per pound.
Weakening corn prices, a common ingredient in feeder cattle diet, have also lent support to cattle futures.
Choice cuts of boxed beef rose 60 cents to $344.17 per hundredweight on Tuesday morning, while select cuts rose $5.51 to $333.59 per hundredweight, according to U.S. Department of Agriculture data. The start of grilling season has lent support to cattle and hog futures.
Beijing last week said that it was evaluating an offer from Washington to hold talks over tariffs. U.S. President Donald Trump said on Sunday that Washington is having meetings with many countries, including China, and that his priority with China is to get a fair deal.
However, a lack of clear details on trade negotiations has left traders impatient. China is a major buyer of U.S. pork, and Chinese retaliatory tariffs on U.S. agricultural products have hit pork futures hard.
CME June lean hog futures fell 1.425 cents to close at 97.575 cents per pound.
(Reporting by Heather Schlitz. Editing by Alan Barona)
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