October hog futures settle down - CME
Profit-taking pushes cattle futures down
16 September 2024
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle futures backtracked from a one-week high on profit-taking on Friday, while feeder cattle futures retreated from their loftiest price in nearly a month, Reuters reported, citing brokers.
Traders booked profits ahead of the weekend, after the markets previously found support from gains in equities and improved processor margins that should boost demand for slaughter-ready cattle. Beef processors were earning $54.30 for each head of cattle they slaughtered, after losing money on each animal just a month ago, HedgersEdge.com data shows.
CME October live cattle futures ended down 0.375 cent at 177.65 cents per pound after rising to 178.900, the contract's highest since Sept. 5.
October feeder cattle ended down 0.625 cent at 239.125 cents per pound after jumping earlier to 241.375 cents, the contract's highest since mid-August.
Next Friday, traders will review US Department of Agriculture (USDA) data showing the number of cattle in feedlots at the start of the month. As of Aug. 1, there were 11.1 million cattle on feed, up 0.3% from a year ago, the USDA said.
The USDA on Sept. 12 raised its forecast for US beef production in 2024 from August, citing higher cattle slaughterings and heavier cattle weights in the second half of the year. The agency also raised its projection for pork production for the second half of 2024 due to a faster expected pace of pig slaughtering.
Packers slaughtered an estimated 118,000 cattle on Friday, compared to 123,000 cattle a week ago and 121,084 cattle a year earlier, the USDA said. They slaughtered an estimated 480,000 hogs, compared to 482,000 hogs a week ago and 476,522 hogs last year.
Expectations for a seasonal increase in the US pig slaughter pace hung over CME lean hog futures, a broker said.
October hog futures settled down 0.45 cent at 78.45 cents per pound, and December hogs ended 0.25 cent lower at 71.3 cents.
