Hogs sink on demand worries, technicals - CME
US cattle futures end mixed
1 July 2022
1 minute read
By: Chicago Mercantile Exchange (CME) lean hog futures fell on Thursday in tandem with sinking equities and energy markets, and as recession fears sparked concerns about pork demand and reduced consumer spending, reported Reuters.
Live cattle futures touched multi-week lows and ended mixed as the broader economic concerns largely offset support stemming from sharply lower corn feed prices and stressful heat in US Plains cattle areas.
Stocks on global indexes were sharply lower on Thursday and Treasury yields slid after US data showed consumer spending rose less than expected in May.
"Today was more about the overall macro fundamentals," said Ted Seifried, chief agriculture strategist for the Zaner Group.
CME August lean hog futures broke through technical chart support at its 200-day moving average and settled down 1.475 cents at 102.100 cents per pound. The contract touched its lowest since 13 May during the session.
CME's benchmark August live cattle futures fell to its lowest point since 1 June on Thursday but ended 0.400 cent higher at 132.575 cents per pound, helped by strong gains in feeder cattle.
August feeders added 2.875 cents to settle at 173.600 cents per pound as corn futures tumbled more than 5%.
