US live cattle, hog futures advance - CME
Markets recovered from losses in previous session
7 July 2022
2 minute read
By: Chicago Mercantile Exchange (CME) cattle and hog futures closed stronger on Wednesday as the livestock markets recovered from losses in the previous session that were linked to fears of a global economic recession, reported Reuters, citing traders.
Wall Street also finished higher, after broad declines in equities and commodities on Tuesday spilled over into livestock markets.
Cattle futures in particular are linked to the moves in the stock market because economic slumps can reduce consumer demand for beef, analysts said.
CME's benchmark August live cattle contract settled up 1.575 cents at 134.500 cents per pound. August feeder cattle rose 0.600 cent to settle at 173.300 cents per pound.
August hogs finished 3.250 cents higher at 109.200 cents per pound.
The USDA quoted the pork carcass cutout value at $111.50 per cwt, down about $3 from Tuesday.
Profit margins for pork processors improved to $25.35 per hog from $23.05 per hog on Tuesday, HedgersEdge.com said. That was down from $43.05 per hog a week ago.
In China, the world's top pork producer and consumer, the most-active live hog futures contract closed down 4.7% in the biggest daily decline since the contract launched.
Chinese hog prices have surged over the last two months, as a reduction in the breeding herd that began last year started to impact output. The market trend reversed sharply on Wednesday, after the National Development and Reform Commission said it will step up supervision of prices.
Analysts said that US traders need to watch China's demand for imported soybeans used for feed to determine the health of the Chinese hog industry.
