Hog, live cattle futures fall on recession fears - CME
Feeder cattle futures firm on falling corn prices
24 June 2022
2 minute read
By: Chicago Mercantile Exchange (CME) Group live cattle and hog futures fell on Thursday, pressured by growing fears of a recession that could cut demand for pricey meats, Reuters reported, citing traders.
Losses accelerated due to fund liquidation as the end of the quarter nears.
But feeder cattle futures were firm as falling corn prices raised the prospects for cuts to feeding costs.
After the close, the US Department of Agriculture (USDA) said that frozen beef stocks stood at 519.833 million lbs on 31 May, down 2 percentage points from a month earlier but 25% higher than a year earlier.
Frozen pork belly stocks fell to 56.93 million lbs from 58.33 million during May. The total was 55% higher than May 2021.
Analysts expect a USDA report on Friday afternoon to show that amount of cattle on feed as of 1 June was 101.4% of the total from a year earlier. Cattle placements during May were seen at 99.6% of May 2021 total and marketings at 103%.
CME July lean hog futures fell 3.3 cents to close at 108.55 cents per pound, while the most-active August hogs were 4.65 cents lower at 103.675 cents per pound.
The most-active August live cattle futures dropped 1.05 cents to 133.875 cents per pound. October live cattle fell 1.075 cents to 140 cents.
CME August feeder cattle gained 1.7 cent to settle at 174.85 cents per pound.
