Lean hog, live cattle futures slip on demand concerns - CME
Food inflation weighing heavy on US consumers
9 May 2022
1 minute read
Chicago Mercantile Exchange (CME) Group live cattle and hog futures slumped on Friday, as investors worried about the prospect of food inflation weighing heavy on US consumer meat demand as the summer grilling season gets underway, reported Reuters, citing analysts.
Benchmark June lean hogs settled the day down 2.975 cents to 104.100 cents per pound. Meanwhile, July hogs slipped 2.375 cents to 107.05 cents per pound, erasing Thursday's gain.
"There is a lot of demand concern right now, as the export front is slow and China is basically out of the market," said Don Roose, president of Iowa-based US Commodities.
Hog slaughter continued to remain strong, with 457,000 head slaughtered, compared to 446,000 head a week earlier and 461,000 for the same period last year.
Meanwhile, live cattle futures fell amid ongoing concerns that rising inflation will cool US consumer demand. And feeder cattle contracts firmed, as corn futures fell on the session.
CME June live cattle futures settled down 1.025 cents to settle at 132.750 cents per pound, while August feeder cattle rose 0.325 cent to 174.700 cents per pound.
Wholesale boxed beef prices were mixed early on Friday, with choice cuts falling 48-cents to $254.70 per cwt, while select cuts gained 62-cents to $246.43 per cwt, according to the US Department of Agriculture.
Source: Reuters
