Lean hog futures fall - CME
Cattle markets also fall amid fears over labour market
9 September 2024
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures fell on Friday on a dip in equities markets, slowing momentum in the labour market and a weak cash cattle trade, Reuters reported, citing analysts.
Lean hog futures also fell as industry players anticipated a large supply of heavy hogs to hit the market within the next months.
Beef and pork demand has eased as the United States nears the end of the outdoor grilling season and cooler weather approaches.
Most-active CME October live cattle closed down 2.075 cents at 175.175 cents per pound. Most-active CME October feeder cattle finished down 3.625 cents at 230.95 cents per pound.
Most-active CME October lean hog futures settled down 1.2 cent at 79.5 cents per pound.
US employment increased less than expected in August, Labour Department data showed on Friday. The closely watched employment report also showed solid wage growth last month, which should help to support consumer spending and keep the economy out of recession for now.
Nonetheless, labour market momentum has slowed, with 86,000 fewer jobs added in June and July than previously reported.
"The last three years the labour market's been on a downward trend, and it's not encouraging," Altin Kalo, economist at Steiner Group, said. "There's a strong correlation between labour market and food service demand."
A downturn in restaurant spending often signals trouble for cattle futures, as many restaurant meals involve beef.
Select boxed beef prices fell on Thursday afternoon, with prices down $0.66 at $296.12 per hundredweight (cwt), US Department of Agriculture (USDA) data showed. Choice boxed beef cutouts fell $2.10 to $309.41 per cwt.
Pork carcass cutout prices rose by $1.27 to $96.14 per cwt, according to USDA data.
