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CME live and feeder cattle futures fell on Monday on expectations of a seasonal demand dip from meatpackers. Cargill suspended production at its Dodge City, Kansas beef plant after weekend rains caused a roof collapse.
August live cattle settled 1.15 cents lower at 184.275 cents per pound and August lean hogs fell to 88.175 cents.
A prolonged plant closure reduces slaughter capacity and cattle demand, pressuring feeder and live cattle prices. Lower packer demand and softer pork values also weigh on hog prices, which matters for feed buyers' livestock demand outlook.
thecattlesite.comMelanie EppJul 1, 2024Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Directly explains the 2024-07-01 drop: expected seasonal dip in packer demand plus Cargill's Dodge City plant shutdown cutting slaughter capacity and cattle demand.
Monday's CME cattle futures drop on expected seasonal packer demand weakness and Cargill's Dodge City plant shutdown (reducing slaughter demand for fed cattle) is the most direct driver of the sharp decline.
