US lean hogs fall on weak exports - CME
Live cattle futures ease on softening cash values
19 August 2022
2 minute read
By: Chicago Mercantile Exchange (CME) lean hog futures fell on Thursday, pressured by softening wholesale pork prices and weak export demand, reported Reuters, citing analysts.
"We're going to have more supply coming at us, and that's putting pressure on the wholesale market," said Altin Kalo, economist at Steiner Consulting Group.
CME August October lean hogs fell 4.750 cents to 93.300 cents per pound, dropping 4.84%.
Wholesale pork prices eased early in the session but recovered by the end of day, with pork carcasses adding $1.44 to $119.91 per cwt, the US Department of Agriculture (USDA) said.
The CME's Lean Hog Index a two-day weighted average of cash hog prices shaved 44 cents to $120.62 per cwt.
US exporters sold 13,500 tonnes of pork during the week ended August 11, down 43% from the prior 4-week average, the USDA said.
"The export numbers that came out this morning were not very encouraging. Sales to China were almost non-existent, so I think that added to the downward pressure," said Kalo.
Live cattle futures also eased, pulled lower by softening cash values in the southern US Plains.
"Even though you have pretty strong prices in parts of the country, the average price keeps getting dragged lower by what’s happening in the south," said Kalo.
CME October live cattle futures lost 1.100 cents to 144.750 cents per lb., while CME September feeder cattle futures fell 1.850 cents to 185.275 cents per lb.
Cash cattle prices in the southern US plains traded around $141 per cwt, discount to the northern plains, which traded steady at $148 per cwt.
Wholesale beef prices were steady-to-softer, with select cuts slimming 42 cents to $237.47 per cwt, while choice cuts firmed 5 cents to $264.39 per cwt.
