Chicago | Reuters — Chicago Mercantile Exchange lean hog futures fell on Thursday, pressured by softening wholesale pork prices and weak export demand, analysts said.
“We’re going to have more supply coming at us, and that’s putting pressure on the wholesale market,” said Altin Kalo, economist at Steiner Consulting Group.
CME October lean hogs fell 4.75 cents, to 93.3 cents/lb., dropping 4.84 per cent (all figures US$).
Wholesale pork prices eased early in the session but recovered by the end of day, with pork carcasses adding $1.44, to $119.91/cwt, USDA said.
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The CME’s lean hog index, a two-day weighted average of cash hog prices, shaved 44 cents to $120.62/cwt.
U.S. exporters sold 13,500 tonnes of pork during the week ended Aug. 11, down 43 per cent from the prior four-week average, USDA said.
“The export numbers that came out this morning were not very encouraging. Sales to China were almost non-existent, so I think that added to the downward pressure,” said Kalo.
Live cattle futures also eased, pulled lower by softening cash values in the southern U.S. Plains.
“Even though you have pretty strong prices in parts of the country, the average price keeps getting dragged lower by what’s happening in the south,” said Kalo.
CME October live cattle futures lost 1.1 cents to 144.75 cents/lb., while CME September feeder cattle futures fell 1.85 cents, to 185.275 cents/lb.
Cash cattle prices in the southern U.S. Plains traded around $141/cwt, discount to the northern Plains, which traded steady at $148/cwt.
Wholesale beef prices were steady-to-softer, with select cuts slimming 42 cents, to $237.47/cwt, while choice cuts firmed five cents, to $264.39/cwt.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
