Chicago | Reuters — Chicago Mercantile Exchange lean hog futures fell to their lowest price in nearly four weeks on Tuesday as large supplies hung over the market.
Technical selling added pressure on prices as December hogs dropped below 70 cents/lb. for the first time since Nov. 1, analysts said (all figures US$). The contract ended down 2.175 cents at 68.175 cents/lb. and hit its lowest price since Oct. 26.
February lean hog futures dropped 2.725 cents to close at 72.325 cents/lb.
“We’re challenging the market with very large production,” a commodity broker said.
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U.S. meatpackers slaughtered an estimated 486,000 hogs, up from 473,000 hogs a week ago, the U.S. Department of Agriculture said.
USDA quoted the wholesale pork carcass cutout at $85.21/cwt, down 88 cents, as values weakened for hams, ribs and loins.
Boxed beef prices also eased to $268.77/cwt for select cuts, a decline of $2.18 from Monday, USDA said. Choice cuts were priced at $295.81/cwt, up six cents.
Traders said they expected cattle slaughtering to be strong next week as meat companies prepare to meet beef demand around the Christmas and New Year’s holidays. Meatpackers slaughtered an estimated 126,000 cattle on Tuesday, which was unchanged from a week ago.
CME February 2024 live cattle futures slipped 0.575 cent to end at 176.075 cents/lb. January 2024 feeder cattle fell 1.525 cents, to 228.325 cents/lb., and stayed within Monday’s trading range.
Livestock markets consolidated ahead of the U.S. Thanksgiving holiday on Thursday, traders said.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
