Cattle futures rise on technical buying and stronger beef prices

The market was supported by expectations of resilient consumer demand for beef, bolstered by rising equity markets, falling crude oil prices, and reduced expectations of a Federal Reserve interest rate hike later in the month.

Rich Nelson, chief strategist at Allendale Inc., said the rally was driven by the stock market's performance and the perception that the Federal Reserve might not raise rates at its upcoming meeting.

Wholesale beef prices increased sharply on Monday and again at midday on Tuesday, leading to expanded beef packer margins.

The US Department of Agriculture reported the choice boxed beef cutout at $378.93 per hundredweight on Tuesday, up 67 cents from the previous day.

The average beef packer margin rose to $108.85 per head on Tuesday, compared to $59.65 on Monday, according to HedgersEdge.

Actively traded CME December live cattle futures settled at 224.100 cents per pound, gaining 4.125 cents and reaching a three-week high.

November feeder cattle futures increased by 8.150 cents to close at 338.275 cents per pound, marking the contract's highest level since mid-July.

Technical buying contributed to the gains as prices broke through key moving averages and recent highs on the charts.

In contrast, CME lean hog futures ended weaker, with December hogs down 0.575 cents at 70.375 cents per pound, reflecting a profit-taking retreat from prior-session gains.