Chicago | Reuters — Lean hog futures hit their lowest level in about four weeks on Wednesday before ending mixed as traders adjusted positions before the U.S. Thanksgiving holiday.
The market has dropped about eight per cent since rising on Nov. 7 to the highest price in more than a month, as ample U.S. supplies are looming over futures.
Meatpackers slaughtered an estimated 450,000 hogs on Wednesday, up from 448,000 hogs a year earlier, the U.S. Department of Agriculture said. On Thursday, CME markets will be closed for Thanksgiving.
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December lean hog futures ended up 0.1 cent at 68.275 cents/lb. at the CME after falling earlier to the lowest price since Oct. 26 (all figures US$). February lean hog futures touched their lowest price since Oct. 27 before ending down 0.5 cent at 71.825 cents/lb.
Livestock traders are waiting for USDA to issue weekly pork and beef export sales data on Friday, a day later than usual because of Thanksgiving.
USDA quoted the wholesale pork carcass cutout at $84.68/cwt on Wednesday, down 53 cents, as belly values slid.
In a separate monthly report, USDA said frozen stocks of pork bellies as of Oct. 31 were down six per cent from last month and 31 per cent from last year. Total frozen pork supplies were down six per cent from the previous month and 14 per cent from last year, while beef supplies were up six per cent from the previous month and down 13 per cent from last year.
Boxed beef prices on Wednesday eased by $1.15, to $267.62/cwt, for select cuts and rose by $1.19, to $297/cwt, for choice cuts, according to USDA data.
CME February 2024 live cattle futures sagged 0.8 cent to settle at 175.275 cents/lb. and stayed within Tuesday’s trading range. January 2024 feeder cattle lost 1.2 cents to end at 227.125 cents/lb.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
