Cattle futures drop due to weather and demand concerns

Cattle futures prices fell on the Chicago Mercantile Exchange on Friday after reaching record highs earlier in the week. The June live cattle contract dropped 2.250 cents, closing at 202.775 cents per pound. Similarly, the April feeder cattle contract fell 3.475 cents to settle at 284.975 cents per pound. Experts believe that the cattle futures had become overbought, prompting this decline. Karl Setzer from Consus Ag Consulting noted that prices surged significantly, leading to this technical reversal. Severe weather conditions, including high winds and blizzards, affected cattle movement, especially in Kansas and Nebraska. This situation caused road closures, slowing down cattle transport to slaughterhouses. Concerns about consumer demand are also impacting the cattle market. Analysts cited remarks from Federal Reserve Chair Jerome Powell, indicating that earlier economic policies may lead to slower growth and higher inflation. In related market reports, the USDA announced that wholesale values for choice cuts of boxed beef fell by $2.61, while select cuts increased by $0.26. Traders are awaiting the USDA's monthly cattle on feed report, which showed a larger decrease than expected in the number of cattle on U.S. feedlots. In contrast, April lean hog futures rose slightly after three days of losses, settling up 0.575 cent at 86.125 cents per pound.