Lean hog futures consolidate after rally - CME
December live cattle settle flat
9 November 2022
2 minute read
By: Chicago Mercantile Exchange (CME) lean hog futures pulled back on Tuesday as the market consolidated after climbing nearly 5% during the previous session, Reuters reported, citing brokers as its sources.
CME December hogs closed 1.475 cents, or 1.7%, lower at 85.575 cents per lb.
Wholesale pork prices were also lower. The US Department of Agriculture (USDA) quoted the US pork carcass cutout value at $95.03 per hundredweight (cwt), down by $1.92 from Monday.
On Wednesday, traders and analysts will review monthly USDA supply and demand data on pork and beef and crops like corn that are fed to livestock.
In the cattle markets, CME December live cattle settled flat at 153.05 cents per lb. Feeder cattle futures were little changed, with the most-active January contract down 0.025 cent at 179.90 cents per lb.
Wholesale beef prices edged higher. Choice cuts were up $0.39 at $264.94 per cwt, USDA data showed. Select cuts rose $0.13 to $236.05 per cwt.
Meat processors slaughtered an estimated 129,000 cattle on Tuesday, up from 128,000 cattle a week ago and 124,000 cattle a year ago, the USDA said separately. Processors killed an estimated 491,000 hogs, up from 482,000 hogs a week ago and 477,000 hogs a year ago, the agency said.
Meatpackers' margins also improved. Margins for beef processors were $84.75 per head of cattle on Tuesday, up from $74.05 on Monday and $83.25 a week earlier, livestock marketing advisory service HedgersEdge.com said. Margins for pork processors were $12.70 per hog, up from $9.65 a day earlier and $11.70 a week ago.
