Lean hog futures ease - CME

Live cattle dip as traders weigh cash, consumer demand
calendar icon 30 August 2023
clock icon 2 minute read

Chicago Mercantile Exchange (CME) live cattle futures eased on Tuesday after four days of gains, as traders look for direction from consumer demand amid tight cattle supplies, Reuters reported, citing analysts.

"I think we've been sideways for cattle now for over a month and, I guess until we see a change on the product side or on the cash side, I don't see why this market is gonna go one way or another," said Altin Kalo, economist at Steiner Consulting Group.

The most-active October live cattle eased 0.075 cents to 181.475 cents per pound, while October feeder cattle lost 0.275 cents to 256.750 cents per pound.

Boxed beef prices stepped back, with choice cuts falling $2.68 to $314.36 per cwt., while select cuts dropped $2.41 cents to $289.68 per cwt

Cattle processors slaughtered 125,000 head, down 3,000 head from the same period a year ago, the US Department of Agriculture (USDA) said.

Meanwhile, CME lean hog futures eased as the market anticipates a seasonal influx of market-ready hogs.

"Bigger numbers are coming, heavier weights are coming," Kalo said. "I think there's certainly some nervousness out there for later in the fall."

The most-active October futures trimmed 1.125 cents to 80.725 cents per pound.

Wholesale pork carcass cutout eased $3.20 to $92.85 per cwt., lead by declines in pork bellies.

Pork processors slaughtered 470,000 head, down 10,000 from the same period last year, the USDA said.

The CME's Lean Hog Index, a two-day weighted average of cash prices, held steady at 95.00 cents per pound.

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