On June 21, 2024, the Chicago Mercantile Exchange (CME) cattle futures market showed mixed results. Nearby live cattle contracts slightly increased, reflecting strength in the cash market and continued demand from consumers. However, feeder cattle futures and back-month live cattle contracts experienced a slight dip.
Despite the seasonal pattern leading into the summer grilling season typically seeing a shift in consumer buying behavior towards cheaper options like ground beef and hot dogs, there has been ongoing strength in consumer demand for pricier steaks. This is according to Don Roose, president of US Commodities in West Des Moines, Iowa. The rise in wholesale beef prices, as reported by the US Department of Agriculture (USDA), with boxed beef cutout prices for both choice and select cuts showing an increase, reflects this trend.
Traders were closely monitoring the upcoming beef and pork export data from the USDA due to the delayed Juneteenth federal holiday. In light of signals suggesting a potential slowdown in the US economy later in the year, market participants were considering the implications for meat demand. While data indicated ongoing strength in the US jobs market, there were also reports of a decline in US single-family homebuilding in May due to high mortgage rates.
CME lean hog futures saw a decrease due to anticipation of weakened pork exports as a result of trade disputes between China and European Union countries that could lead to an influx of pork into global markets. CME July hogs closed lower while August live cattle settled higher and August feeder cattle ended down slightly.
