Hog, cattle futures decline - CME

Lacklustre demand cited as the cause
calendar icon 17 October 2023
clock icon 2 minute read

Chicago Mercantile Exchange (CME) livestock markets weakened on Monday, with lean hog futures nearing their lowest price in more than four months, reported Reuters.

Concerns about lacklustre demand for US pork continued to hang over the market, analysts said.

Seasonally, hog futures also tend to decline around this time of year as pigs fatten up on newly harvested corn, said Don Roose, president of brokerage US Commodities.

"Supplies are picking up," he said. "Weights are picking up with fresh corn."

Farmers have harvested 45% of their corn crop so far this autumn, above the five-year average of 42%, according to US government data.

CME December lean hog futures ended down 1.200 cents at 68.300 cents per pound and hit a session low of 68.125 cents. A fall below 68 cents would bring the contract to its lowest price since it set a low in late May.

The US Department of Agriculture (USDA) quoted the wholesale pork carcass cutout at $91.22 per hundredweight (cwt), up $0.72, as belly values soared $7.18.

The USDA said separately that meat processors slaughtered an estimated 485,000 hogs on Monday, down slightly from a week ago and a year ago. Cattle slaughtering was also a bit lower, after US ranchers have reduced the size of theirs herds due to drought.

CME December live cattle futures settled down 0.200 cent at 186.550 cents per pound. November feeder cattle futures ended 1.650 cents lower at 249.925 cents per pound.

In other news, Tyson Foods workers and activists rallied outside the US meat company's headquarters in Arkansas to protest the industry's use of child labour and push for improved working conditions in processing plants.

© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.