Chicago | Reuters—Chicago Mercantile Exchange lean hog and cattle futures fell on Wednesday on signs of profit-taking, as wholesale prices continued to say firm and strength in the financial markets gave grain futures a boost, analysts said.
Benchmark CME December lean hog futures LHZ24 ended down 1.600 cents at 75.575 cents per pound.
CME December live cattle futures LCZ24 settled down 0.65 cent at 187.225 cents per pound. CME November feeder cattle futures FCX24 ended down 1.625 cent at 248.675 cents per pound.
Though livestock futures ended the day lower, there is little sign that management money players are stepping away from cattle and hog markets, traders said.
Read Also
Dryness poised to threaten Saskatchewan crops
Crops in Saskatchewan are developing in opposite directions, the province’s latest crop report said. Growing conditions in the province vary, with some areas receiving enough rain while other locations are experiencing crop stress due to hot, dry conditions.
Instead, hedge funds have been expanding net long positions in cattle — and are taking aggressive moves to stay long in hog — as consumer demand for meat appears to be staying firm, particularly for beef, said Dan Norcini, an independent livestock trader.
Pork wholesale carcass prices turned higher on Wednesday morning, driven by a jump in pork belly prices, according to U.S. Department of Agriculture data.
Boxed beef prices also firmed, with choice cutout values up $1.61 per hundredweight (cwt) and select cutout values up 87 cents at $289.48 per cwt.
At the same time, U.S. meatpackers have continued to buy cattle to meet consumer demand, with the heavier weighted animals helping to bolster total meat volume, he said.
Cash cattle market prices are expected steady to firm this week, with one trade reported in Iowa at $187 per cwt, and producers seeing offers starting at $187 per cwt in the Southern Plains, market analysts said.
“Packers have been putting better money on the table recently when buying cash cattle, and the demand for beef appears to still be there,” Norcini said.
