Cattle, lean hog futures lower on profit-taking - CME
Financial markets give grain futures a boost
10 October 2024
2 minute read
By: Chicago Mercantile Exchange (CME) lean hog and cattle futures fell on Wednesday on signs of profit-taking, as wholesale prices continued to say firm and strength in the financial markets gave grain futures a boost, Reuters reported, citing analysts.
Benchmark CME December lean hog futures ended down 1.600 cents at 75.575 cents per pound.
CME December live cattle futures settled down 0.65 cent at 187.225 cents per pound. CME November feeder cattle futures ended down 1.625 cent at 248.675 cents per pound.
Though livestock futures ended the day lower, there is little sign that management money players are stepping away from cattle and hog markets, traders said.
Instead, hedge funds have been expanding net long positions in cattle — and are taking aggressive moves to stay long in hog — as consumer demand for meat appears to be staying firm, particularly for beef, said Dan Norcini, an independent livestock trader.
Pork wholesale carcass prices turned higher on Wednesday morning, driven by a jump in pork belly prices, according to US Department of Agriculture data.
Boxed beef prices also firmed, with choice cutout values up $1.61 per hundredweight (cwt) and select cutout values up 87 cents at $289.48 per cwt.
At the same time, US meatpackers have continued to buy cattle to meet consumer demand, with the heavier weighted animals helping to bolster total meat volume, he said.
Cash cattle market prices are expected steady to firm this week, with one trade reported in Iowa at $187 per cwt, and producers seeing offers starting at $187 per cwt in the Southern Plains, market analysts said.
"Packers have been putting better money on the table recently when buying cash cattle, and the demand for beef appears to still be there," Norcini said.
