US lean hogs close down - CME
Live cattle, feeder cattle futures slump
11 July 2022
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle futures eased on Friday as brokers said steady-to-lower cash prices were seen as disappointing, reported Reuters.
Feeder cattle futures also finished weaker, under pressure from climbing prices of grain used for livestock feed, brokers said.
Traders kept an eye on the cash market, where prices are trading at a premium to live cattle futures. Futures trading is expected to remain sideways and choppy, brokers said.
Seasonally, it is difficult for futures to rally in the summer, said Don Roose, president of Iowa-based broker US Commodities.
"The cattle market is just stuck," Roose said.
August live cattle futures settled down 0.600 cent at 132.950 cents per pound. August feeder cattle dropped 0.750 cent to close at 171.725 cents per pound and hit their lowest price since 30 June.
In demand news, weekly export sales of US beef were lacklustre, brokers said. Net sales of 11,000 tonnes for 2022 were down 35% from the previous week and 30% from the prior four-week average, according to the US Department of Agriculture (USDA).
For US pork, weekly net sales of 31,200 tonnes for 2022 were down 3% from the previous week but up 23% from the prior four-week average. China, the world's largest pork consumer and producer, bought 11,400 tonnes, including cancellations of 200 tonnes, the USDA said.
The USDA separately reported the pork carcass cutout value rose by $2.34 to $114.53 per cwt.
Globally, meat price indices rose in June, although overall food prices fell for a third consecutive month, the United Nations' food agency said.
At the CME, most-active August lean hogs closed down 0.325 cent at 109.175 cents per pound. October hogs edged up 0.025 cent to 94 cents per pound and reached its highest price since 28 April. Other deferred contracts were also stronger.
