# CME update: US cattle futures rise on strong beef prices and restricting supplies
						 | The Cattle Site

> US live cattle futures rose by daily limits for two sessions on May 7 as boxed beef prices hit historic highs amid plant closures. Cash cattle rebounded to $110 in the southern Plains after Trump asked DOJ to examine packer antitrust allegations.

- Date: 2020-05-07 · published 2020-05-07T12:00:00.000Z
- Category: market · region US · magnitude medium
- Page: https://feedsoft.ai/events/53258-cme-update-us-cattle-futures-rise-on-strong-beef-prices-and-restricting
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

Packer capacity shortfalls and record beef prices support cattle futures, while cash cattle rebounds lift feeder values. Supply restrictions remain the key price driver.

## Read by commodity

- FCATTLE: bullish ▲
- LCATTLE: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| LCATTLE | 2020-05-11 | 5 | +7.3% | 2.9 | Live cattle futures rose by the daily limit on May 7 as record boxed beef prices and a cash rebound to $110 followed the DOJ packer probe, which directly explains the 5-day rally ending May 11. |
| FCATTLE | 2020-05-06 | 5 | +10.6% | 2.9 | Live cattle futures rose by the daily limit on May 7 as record boxed beef and a DOJ packer probe lifted cash cattle to $110, which supports feeder futures, though the event falls just after the May 6 window end. |
| LCATTLE | 2020-05-19 | 5 | +6.0% | 2.8 | Live cattle futures rose by the daily limit for two sessions on May 7 as record boxed beef prices and plant closures tightened supply, which drove the early part of the rally. |
| LCATTLE | 2020-05-11 | 1 | +5.5% | 3.5 | Live cattle futures hit limit-up on May 7 as record boxed beef and plant closures plus the DOJ packer probe lifted cash cattle, a momentum that plausibly carried into the May 11 gain. |

## Sources

- thecattlesite.com: https://www.thecattlesite.com/news/55281/cme-update-us-cattle-futures-rise-on-strong-beef-prices-and-restricting-supplies

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.