Chicago | Reuters — Chart-based selling drove Chicago Mercantile Exchange lean hog futures lower on Tuesday, brokers said, as the market extended a recent setback.
Most-active October lean hog futures fell 0.95 cent, or 1.2 per cent, to settle at 78.2 cents/lb. and touched their lowest price since July 3 (all figures US$).
The contract has dropped 10 per cent since reaching a March high on Aug. 1.
The U.S. Department of Agriculture (USDA) quoted the wholesale pork carcass cutout at $108.63/cwt, down 45 cents from Monday. Cutout values for pork bellies slid $3.54, to $194.85/cwt.
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Brokers said it seems belly values may have peaked after a recent surge that drove gains in the pork cutout.
In China, the world’s top pork consumer, processor WH Group expects hog prices to rise 10-20 per cent in the second half of 2023 from the first six months, supported by stronger demand and smaller supply glut.
In CME live cattle futures, meanwhile, trading was largely sideways, brokers said.
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Most-active October live cattle dropped 0.7 cent, to 179.975 cents/lb., and hit its lowest price since Aug. 1. September feeder cattle futures eased 0.35 cent to 249.775 cents/lb. and touched a one-week low.
U.S. beef demand has slowed due to high prices as producers have reduced the size of the U.S. herd to its lowest in decades, brokers said.
Choice cuts of boxed beef rose by $1.76, to $307.26/cwt, while select cuts of boxed beef increased by $2.58, to $283.07/cwt, USDA said.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
