Chicago | Reuters — CME hog futures dropped to their lowest in nearly three months on Friday, pressured by concerns about consumer demand as summer grilling season nears, traders said.
Cattle futures also fell.
Some end-of-month fund liquidation likely added to the weakness in livestock contracts, traders said.
“There is not a whole lot of good news on the demand front,” said Altin Kalo, economist at Steiner Consulting Group. “Disposable incomes are down, inflation has ratcheted up. The consumer is a lot less certain than a year ago.”
Benchmark June lean hogs settled 4.6 cents lower at 106.375 cents/lb. (all figures US$). The contract, which hit its lowest since Feb. 1, dropped below its 100-day moving average as well as the low end of its 20-day Bollinger range during the session.
CME June live cattle futures dropped 1.25 cents to settle at 132.65 cents/lb.
CME May feeder cattle fell 1.6 cents, to 156.35 cents/lb., and most-active August feeders dropped 2.125 cents, to 168.275 cents/lb.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.
