29 September 2022

2 minute read

North America

Benchmark December lean hog futures on the Chicago Mercantile Exchange (CME) continued their slide on Wednesday, hitting a nine-month low on recession worries and long liquidation, reported Reuters.

CME October hogs ended up 0.675 cent at 89.375 cents per lb. But most-active December hogs fell 0.425 cent to settle at 75.825 cents per lb after dipping to 75.325 cents, the contract's lowest since December 21. Commodity funds hold a net long position in CME lean hog futures, leaving the market prone to bouts of long liquidation.

Wholesale pork prices steadied, with carcass values edging back above $100 per hundredweight (cwt) one day after dipping below that benchmark for the first time in four months. The US Department of Agriculture priced pork carcasses on Wednesday afternoon at $100.77 per cwt, up $1.76 from Tuesday.

Traders await the USDA's quarterly Hogs and Pigs report on Thursday. Analysts surveyed by Reuters on average expect the government to report the US hog herd was 0.8% smaller on September 1 than a year earlier. 

The USDA is also scheduled to release its weekly export sales report on Thursday, which should help traders to gauge the impact of a soaring dollar on export demand for US pork and beef.

CME live cattle futures declined Wednesday for a sixth straight session on fears that a slowing US economy could dent domestic demand for high-priced cuts of meat.

CME October live cattle settled down 0.525 cent at 143.050 cents per lb and the most-active December contract fell 0.625 cent to end at 146.275 cents after touching 146.075 cents, a two-month low.

CME November feeder cattle settled 1 cent lower at 175.275 cents per lb.

In the cash market, fat cattle traded mostly steady this week at $143 per cwt in the southern US Plains and $144 to $145 in Nebraska, traders said.

Source: Reuters