Chicago | Reuters — Chicago Mercantile Exchange lean hog futures fell on Wednesday on profit-taking after a two-session climb and pressure from softening cash hog prices, traders said.
CME benchmark October lean hogs settled down 2.075 cents at 91.525 cents/lb. and December hogs ended down 1.625 cents at 83.875 cents/lb.
The CME Lean Hog Index, a two-day weighted average of cash hog prices, fell to $109.36 per hundredweight (cwt), down $1.90 from a day earlier and its lowest since mid-June.
“The cash market is belly-flopping, getting close to futures. The discount (for futures) was historically wide, and it’s narrowing,” said Don Roose, president of Iowa-based U.S. Commodities.
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Hog futures have a seasonal tendency to decline in the fall, Roose added, as cooler weather helps hogs to gain weight, bolstering supplies of pork.
Wholesale pork prices firmed a bit after plunging last week. The U.S. Department of Agriculture reported the pork carcass value at $103.19/cwt on Wednesday afternoon, up $1.03 from Tuesday.
In the cattle markets, CME live cattle futures also declined but feeder cattle closed mixed, with nearby contracts firming slightly.
Benchmark CME October live cattle futures settled down 1.25 cents at 142.575 cents/lb., while October feeder cattle ended up 0.2 cent to finish at 183.475 cents.
In the U.S. wholesale beef market, choice cuts fell $1.45, to $258.34/cwt, according to USDA. Select cuts fell $1.94, to $237.74/cwt.
After the markets closed, USDA said it would delay its next weekly export sales report until Sept. 15 at the earliest, leaving traders in the dark about overseas demand for grains and meat. USDA is struggling to launch a new reporting system for the data. The export sales report is normally issued each Thursday.
— Julie Ingwersen is a Reuters commodities correspondent in Chicago.
