Cattle, hog futures mostly down - CME
Weak margins, inflation worries cited as the cause
14 October 2022
1 minute read
By: Chicago Mercantile Exchange (CME) cattle and hog futures ended mostly lower on Thursday on eroding meat packer margins and as soaring inflation raises demand concerns, Reuters reported, citing traders.
Technical selling and profit-taking further fueled declines in livestock futures after live cattle and lean hog contracts touched 2-1/2-week highs this week.
A US Labor Department report on Thursday showed consumer prices increased by more than expected last month, including food prices.
CME December live cattle fell 0.525 cent to 147.925 cents per lb after the most actively traded contract touched its highest level since September 26 a day earlier.
CME November feeder cattle ended down 0.575 cent at 176.100 cents per lb.
CME December lean hog futures shed 0.100 cent to settle at 80.600 cents per lb after touching its highest since September 26 during the trading session.
The average beef packer margin weakened on Thursday to negative $6.35 per head, down from a negative $5.30 on Wednesday and a positive $22.50 a week ago, according to livestock marketing advisory service HedgersEdge.com LLC.
Pork packer margins narrowed to $14.45 per head, down from $18.95 a day earlier but up from negative 15 cents last week.
