Chicago | Reuters – Chicago Mercantile Exchange cattle futures eased on Tuesday, retreating from a two-week high hit on Monday on a round of profit taking, traders said.
Hog futures were higher, supported by a U.S. government report released after the close on Monday that showed supplies were tighter than expected.
The most active December live cattle contract dropped 0.725 cent, closing at 117.350 cents per pound while February cattle were off 0.425 cent at 122.050 cents.
The December live cattle contract found technical support at its 40-day moving average, a level it has not settled below since Aug. 31.
CME November feeder cattle shed 1.125 cents to 155.800 cents per pound.
Sharp declines in the stock market that could cut into consumer demand for beef added to the weakness in cattle futures, said Rich Nelson, analyst at Allendale Inc.
CME December lean hog futures settled up 1.350 cents at 54.525 cents per pound. The contract closed below its session high after failing to hold support above the 50-day moving average.
Concerns about the spread of African swine fever in China boosting export demand for U.S. supplies also contributed to the strength in the hog market.
China’s southern Guangdong province on Tuesday banned the transport of live hogs to other parts of the country after two outbreaks of the deadly virus reported in a neighboring area.