Chicago Mercantile Exchange (CME) live cattle futures bounced back on Thursday as a strong cash market and a bump in beef demand lent support to prices, Reuters reported, citing traders.
Packers have been willing to pay up for cattle, with analysts reporting packer bids of up to $187 per cwt.
Wholesalers have begun purchasing beef to gear up for the Thanksgiving and Christmas holidays, which has helped prop up the cash market, dealers said.
But despite a strong cash trade and rising wholesale boxed beef prices, industry players remain split on the strength of consumer demand.
"I'm not convinced the inflation-weary consumer is excited about beef," Dennis Smith, broker with Archer Financial Services, said.
CME December live cattle futures settled up 1.05 cent at 188.275 cents per pound. CME November feeder cattle futures ended down 1.275 cent at 249.95 cents per pound.
Commodity funds have continued to expand net long positions in cattle amid stronger-than-expected consumer demand and increasing optimism about the US economy.
Investors are weighing Thursday's strong consumer price index report against relatively weak jobs data.
US consumer prices rose slightly more than expected in September, but the annual increase in inflation was the smallest in more than 3-1/2 years. Meanwhile, jobless claims rose to 258,000 for the week ending Oct. 5, versus an estimate of 230,000.
Boxed beef prices also firmed, with choice cutout values up $1.77 per hundredweight (cwt) at $309.95 and select cutout values up $2.10 at $290.73 per cwt. Pork wholesale carcass prices turned slightly lower.
Meanwhile, lean hog futures rose as hog supplies landed below industry expectations, Smith said.
Benchmark CME December lean hog futures ended up 1.375 cents at 76.95 cents per pound.
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