Chicago | Reuters — CME Group live cattle and hog futures slumped on Friday, as investors worried about the prospect of food inflation weighing heavy on U.S. consumer meat demand as the summer grilling season gets underway, analysts said.
Benchmark June lean hogs settled the day down 2.975 cents, to 104.1 cents/lb. (all figures US$). Meanwhile, July hogs slipped 2.375 cents, to 107.05 cents/lb., erasing Thursday’s gain.
“There is a lot of demand concern right now, as the export front is slow and China is basically out of the market,” said Don Roose, president of Iowa-based U.S. Commodities.
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Hog slaughter continued to remain strong, with 457,000 head slaughtered, compared to 446,000 head a week earlier and 461,000 for the same period last year.
Meanwhile, live cattle futures fell amid ongoing concerns that rising inflation will cool U.S. consumer demand. And feeder cattle contracts firmed, as corn futures fell on the session.
CME June live cattle futures settled down 1.025 cents to settle at 132.75 cents/lb., while August feeder cattle rose 0.325 cent to 174.7 cents/lb.
Wholesale boxed beef prices were mixed early on Friday, with choice cuts falling 48 cents, to $254.70/cwt, while select cuts gained 62 cents, to $246.43/cwt, according to the U.S. Department of Agriculture.
— P.J. Huffstutter reports on agriculture and agribusiness for Reuters from Chicago.
