US lean hogs ease on weaker pork cutout - CME
February live cattle futures ease
21 December 2022
2 minute read
By: Chicago Mercantile Exchange (CME) Group lean hog futures fell on Tuesday, pressured by falling pork prices, Reuters reported, citing analysts.
"The product markets are so weak, I think it's keeping the nearby under pressure," said Altin Kalo, economist at Steiner Consulting Group.
Carcass cutout values dropped $1.47 to $83.46 per hundredweight (cwt.), according to the US Department of Agriculture (USDA).
CME February lean hogs closed down 1.450 cents at 84.250 cents per pound.
The CME's Lean Hog Index, a two-day weighted average of cash hog prices, fell 71 cents to $80.84 per cwt.
The USDA is scheduled to issue a quarterly Hogs and Pigs report on Friday, along with monthly Cattle on Feed data.
CME live cattle futures also stepped back on Tuesday, as declining slaughter pace pressures cash and futures markets, while the threat of winter weather lends support.
"They’ve kind of offset each other," said Kalo. "Even though you have pretty high wholesale prices, the packers have kind of stepped back here."
Cold temperatures and winter storms moving through the US Great Plains add support, Kalo noted.
Beef slaughter pace picked up on Tuesday to 124,000 head, after dipping to 100,000 head on Monday, the USDA said.
Boxed beef prices were mixed, with choice cuts firming $1.22 to $265.05 per hundredweight, while select cuts fell $4.67 to 233.90 per hundredweight, the USDA reported.
Benchmark CME February live cattle eased 0.475 cent to end at 155.575 cents per pound, while the spot December live cattle contract eased 0.225 cent to 155.050 cents per pound.
Feeder cattle futures firmed, with the January contract adding 1.525 cents to 183.625 cents per pound.
