Chicago | Reuters — CME Group lean hog futures fell on Tuesday, pressured by falling pork prices, analysts said.
“The product markets are so weak, I think it’s keeping the nearby under pressure,” said Altin Kalo, economist at Steiner Consulting Group.
Carcass cutout values dropped $1.47, to $83.46 per hundredweight (cwt), according to the U.S. Department of Agriculture (all figures US$).
CME February lean hogs closed down 1.45 cents at 84.25 cents/lb.
The CME’s Lean Hog Index, a two-day weighted average of cash hog prices, fell 71 cents, to $80.84/cwt.
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The U.S. Department of Agriculture is scheduled to issue a quarterly Hogs and Pigs report on Friday, along with monthly Cattle on Feed data.
CME live cattle futures also stepped back on Tuesday, as declining slaughter pace pressures cash and futures markets, while the threat of winter weather lends support.
“They’ve kind of offset each other,” said Kalo. “Even though you have pretty high wholesale prices, the packers have kind of stepped back here.”
Cold temperatures and winter storms moving through the U.S. Great Plains add support, Kalo noted.
Beef slaughter pace picked up on Tuesday to 124,000 head, after dipping to 100,000 head on Monday, USDA said.
Boxed beef prices were mixed, with choice cuts firming $1.22, to $265.05/cwt, while select cuts fell $4.67, to $233.90/cwt, USDA reported.
Benchmark CME February live cattle eased 0.475 cent to end at 155.575 cents/lb., while the spot December live cattle contract eased 0.225 cent, to 155.05 cents/lb.
Feeder cattle futures firmed, with the January contract adding 1.525 cents, to 183.625 cents/lb.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
