TheCattleSite.com - news, features, articles and disease information for the cattle industry

News

Hog, cattle futures fall despite strong demand - CME

01 June 2022

"We just had a risk-off day" - risk management consultant

Chicago Mercantile Exchange (CME) Group Lean Hog Futures fell on Tuesday, amid outside pressure from agricultural markets, despite strength from strong slaughter and cash hog prices, reported Reuters.

"We just had a risk-off day," said Matthew Wiegand, Risk Management Consultant at FuturesOne. "Cash trade kicked up and is trading above the board."

The CME's Lean Hog Index, a two-day weighted average of cash hog prices, added 53 cents to $104.93 per cwt.

The nearby June hogs contract lost 2.425 cents to 107.975 cents per pound. Most-active July hog futures fell 3.725 cents to 108 cents per pound.

Hog processors slaughtered 480,000 head, up 7,000 vs. a week ago and 20.6% higher than the same time a year earlier.

Meanwhile, live and feeder cattle futures fell, despite good demand for meat and strong processing pace, Wiegand noted.

"You had good boxed-beef movement and price action coming out of the weekend. Early cash trade was still solidly above the board on live cattle as well," he said.

CME June live cattle dropped 1.650 cents to 130.525 cents per pound, while the most-active August live cattle lost 2.025 cents to 130.375 cents per pound.

CME August feeder cattle fell 1.200 cents to 165.125 cents per pound.

Prices for choice cuts of boxed beef firmed $2.12 to $267.54 per cwt on Tuesday, while select cuts rose $2.15 to $248.65, according to US Department of Agriculture (USDA) data.

Cash cattle traded from $135 per cwt. in the Southern US Plains to $140 per cwt. in the Northern Plains, the USDA said.

Packers slaughtered 126,000 head of cattle on Monday, up slightly from a week ago and a 32.63% increase from the same day in 2021. 

Source: Reuters



Partners


Seasonal Picks