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Cattle Futures Continue Falling on Grain Cost and Demand Concerns

June 15, 2016 at 15:49 by Brent Lantzy

After falling by the maximum daily trading limit of 3 cents per pound on Monday, live cattle futures closed somewhat lower on Tuesday. June live cattle futures on the Chicago Mercantile Exchange traded as low as 116.875 before finishing Tuesday down 0.400 cents (-0.33%) to 119.050 cents per pound, failing to settle at the temporary expanded daily trading limit of 4.5 cents.

By Wednesday, the limits have returned to normal. As of 15:23 GMT live cattle for June is down 1.400 cents to 117.650 cents per pound. The most heavily traded August contract is down 1.400 cents to 113.600 cents per pound as of 15:23 GMT.

The August contract for feeder cattle stood at 140.750 cents per pound, down 1.400 cents on the day as of 15:23 GMT.

The midday choice beef cutout price for June 14 stood at $228.34 per cwt, up 78 cents from Monday, while select cuts were up $2.08 to $204.07 per cwt, according to data provided by the US Department of Agriculture.

Cattle prices have been weighed down by a recent rally in grain prices Toddler Bounce House and possible cooling beef demand. Corn, the staple feed ingredient for cattle, represents the primary cost for producers in growing light-weight livestock.

US corn futures reached a two-year high on Tuesday over concerns about the detrimental effects of hot weather across major growing regions.

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