April lean hog futures finish down - CME

Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures rose on Friday in a modest rebound from recent losses, reported Reuters. 

Hopes for improving demand from US meatpackers and higher beef prices supported the recovery, traders said, after futures and cash prices have retreated from record highs fuelled by tight supplies.

"It's been a quick fall from grace, led by a sharp pullback in packer slaughter rates and soft beef markets, both of which do show some signs of stabilising now," brokerage StoneX said in a note.

April live cattle futures closed up 0.15 cent at 193.95 cents per pound. The contract has tumbled 6.6% from its high on January 28.

March feeder cattle ended 1.125 cents higher at 267.95 cents per pound but are down 4.2% from last month's peak.

US cattle inventories are at their lowest levels in 74 years and beef prices are high after ranchers slashed their herds because drought burned up lands used for grazing.

However, recent supply concerns have eased as Washington allowed Mexico to resume cattle shipments to the United States that were blocked. US President Donald Trump also delayed tariffs that could have disrupted imports from Mexico and Canada.

About 2% more cattle were placed into US feedlots in January than a year earlier, the US Department of Agriculture said in a monthly report issued after trading ended.

High cash prices and relatively low costs for grain used for livestock feed encouraged producers to put more cattle into feedlots, said Rich Nelson, chief strategist for brokerage Allendale.