US hog markets sag- CME
Cattle futures rise on supply concerns
14 August 2023
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle futures strengthened on Wednesday as tight US supplies continued to support the market, Reuters reported, citing analysts.
Feeder cattle futures also advanced, while lean hog futures declined.
The live cattle market is largely trading sideways in the most-active contract this week after finishing with strong gains on Friday, analysts said.
Limited supplies continue to support the market, after producers have sent more cattle to slaughter as drought has reduced the amount of pasture available for grazing.
"You're still seeing the effects of tighter numbers," a broker said.
CME August live cattle futures ended 0.875 cent higher at 180.575 cents per pound. Most-active October live cattle rose 0.800 cent to 181.700 cents per pound.
September feeder cattle futures rose 1.2 cents to settle at 250.625 cents per pound. A decline in corn prices supported feeders by signalling that livestock feed could become cheaper, analysts said.
In the lean hog market, the nearby August contract dropped 0.450 cent to 101.650 cents per pound. The most-active October contract slid 3 cents to 81.575 cents per pound.
The US Department of Agriculture (USDA) quoted the wholesale pork carcass cutout at $109.12 per cwt, down $2.97 from Tuesday. Cutout values for bellies dropped $9.79 per cwt after large gains in recent weeks.
"Without the belly primal's support, the cutout would have turned lower nearly a month ago," brokerage StoneX said in a note.
In China, the world's biggest pork consumer, an acceleration in pork price declines to 26% from 7.2% drove down the country's consumer price index. Weak consumption and ample supplies have pressured Chinese pork prices.
Northern China separately warned of crop and animal diseases breaking out as flood waters retreated from rural areas. Farms across Hebei have been severely affected, with numerous pigs drowning in the floodwaters.
