Chicago | Reuters — Chicago Mercantile Exchange livestock futures tumbled on Thursday as profit-taking and long liquidation pressured prices following recent gains, analysts said.
Lean hog futures pulled back from contract highs reached on Wednesday as traders monitored swings in the stock market after Russia invaded Ukraine.
CME April hog futures sank 2.5 cents to settle at 105.525 cents/lb., a day after setting a high of 112.85 cents (all figures US$). June hog futures ended down 2.675 cents at 116.1 cents/lb., after touching a high of 121.55 cents on Wednesday.
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Futures finished weaker on Wednesday after hitting the contract highs.
“After hogs rolled over yesterday, you’re not really giving them anything to run on today,” said Matt Wiegand, a commodity broker for FuturesOne.
Live cattle futures also declined amid easing wholesale beef prices and rising feed grain costs.
The choice boxed beef cutout value fell by $1.64, to $259.24/cwt, the U.S. Department of Agriculture said. The select cutout was down by $4.41, at $254.55/cwt.
CME April live cattle ended 2.45 cents lower at 142.3 cents/lb., down from a contract high of 148.7 cents reached on Feb. 10. The weakening beef cutout values made it easier for futures to decline, Wiegand said.
“With the end of the month, it made sense to see some profit-taking along with everything else going on,” he said.
CME March feeder cattle dropped 3.675 cents to 159.1 cents/lb. as futures price for corn and wheat used for feed surged.
On Friday, traders may cover short positions ahead of the release of USDA’s monthly Cattle on Feed report after the livestock markets close, analysts said.
The agency is expected to report that placements of cattle in U.S. feedlots during January were down about 0.8 per cent from a year earlier, while marketings were down about 2.7 per cent, according to a Reuters survey of analysts.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
