Live cattle futures retreat on profit taking - CME
US hog markets plummet amidst high supply, uncertain demand
20 April 2023
2 minute read
By: Choppy trade roiled Chicago Mercantile Exchange (CME) livestock markets on Wednesday, while bountiful pork supplies and questions over consumer demand sent five of lean hog contracts slumping to new contract lows, reported Reuters.
The hog market turned sharply down, traders said, as the sector continues to wrestle with weak cash prices and larger-than-expected supplies of hogs.
CME May lean hogs hit a new contract low of 77.900 cents per pound in mid-day trading, before closing down 0.050 cent at 78.775 cents per pound.
Most-active June lean hogs settled up 0.675 cent at 86.425 cents per pound - but it too dropped to a new contract low in mid-session trading.
July, August and October lean hog contracts also touched new contract lows during the session.
"As we say in the business, you have to sell it or smell it, and there's simply been too much meat in the coolers," said Don Roose, president of Iowa-based US Commodities. Midwest grocery chain "Hy-Vee had a sale of 10 pork loins for $10. What does that say to you?" added Roose.
Meanwhile, April and May feeder cattle futures touched fresh contract highs for the third consecutive session this week, as grain futures eased, traders said.
Live cattle futures retreated on profit taking, as US slaughter rates on Wednesday stayed steady and packer margins firmed.
Most-active CME May feeder cattle hit a new contract high of 212.375 cents per pound, before settling down 1.025 cents at 210.475 cents per pound.
CME April feeder cattle futures settled down 1.250 cents at 204.675 cents per pound. Earlier in the session, it hit a contract high of 206.500 cents per pound.
April live cattle futures ended down 1.050 cents at 175.425 cents per pound, while June live cattle finished down 1.600 cents at 163.600 cents.
