Live cattle futures weaken for a second consecutive day - CME
Lean hog futures bounce back from steep losses
31 October 2022
2 minute read
By: Chicago Mercantile Exchange (CME) lean hog futures settled higher on Friday in a recovery from sharp losses recorded in the previous session, while live cattle futures weakened for a second consecutive day, reported Reuters.
December lean hog futures ended up 0.975 cent at 86.100 cents per lb. The contract bounced after sinking by 3.375 cents on Thursday and touching its lowest price since October 18.
"The only thing that supported the December contract today was the sharp discount to the cash index that resulted from the near limit-down close yesterday," said Dan Norcini, an independent livestock trader.
A sharp increase in pork belly prices in a midday cutout report from the US Department of Agriculture (USDA) helped support stronger futures, Norcini said.
The USDA quoted the US pork carcass cutout value at $101.34 per cwt, up by $2.88 from Thursday, while bellies climbed by $19.72 to $155.22.
The surge in pork belly prices may not last due to ample supplies, though. The USDA reported on Monday that belly inventories in cold-storage facilities as of September 30 were up 3% from the previous month and 183% from a year earlier.
CME December live cattle, meanwhile, ended 0.425 cent lower at 153.00 cents per lb. The contract was consolidating after surging over the past month, brokers said.
CME November feeder cattle ended 0.250 cent lower at 177.875 cents per lb, and January feeders slipped 0.075 cent to 180.375 cents per lb.
Meatpackers slaughtered an estimated 124,000 cattle on Friday, up from 122,000 cattle a week ago and 120,000 cattle a year ago, the USDA said.
