25 July 2024

2 minute read

By: Global Ag Media

North America

Chicago Mercantile Exchange (CME) lean hog futures ticked up on technical trading on Wednesday, while cattle futures were mixed to lower, Reuters reported, citing analysts.

Cattle futures were under pressure with little fresh news and lowering demand from consumers, said Karl Setzer, partner at Consus Ag Consulting.

Wholesale beef prices turned lower on the day, according to US Department of Agriculture data, which weighed on cattle futures.

The USDA reported Wednesday afternoon that the choice boxed beef cutout price was $312.68 per hundredweight (cwt), down $0.53 from a day earlier. Select cuts were down $2.70 at $293.96 per cwt.

"Boxed beef continues to erode, and as it does, it's starting to put more pressure on the futures," he said.

Meanwhile, beef packers lost about $61.15 per head on Wednesday, a bigger loss than Tuesday and more than double the $23.25 loss per head seen a week earlier, according to Denver-based livestock marketing advisory service HedgersEdge.com LLC.

The cash cattle market has seen limited trade so far this week, with one trade reported in the Southern Plains on Tuesday at $187.00 per cwt, according to traders. Cash prices could ease in the next couple of weeks, traders said, particularly if packer margins continue to stay in the red.

Hogs traded higher on technical buying in a market that was oversold, said Setzer. Pork wholesale prices firmed.

"The pork cutouts are a little bit firmer here today, given that little bit of extra strength," he said.

CME August live cattle futures ended up 0.600 cent at 186.900 cents per pound, while most-active October live cattle futures rose 0.150 cent at 186.275 cents per pound.

CME August feeders ended 1.625 cents lower at 257.125 cents per pound.

CME August lean hog futures settled up 1.250 cents at 93.775 cents per pound. October lean hog futures ended up 0.900 cent at 78.025 cents per pound.