Wednesday, October 27

CME hog futures fall on meaty supply; cattle rises on export demand


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CHICAGO — Chicago Mercantile Exchange live and feeder cattle futures firmed on Thursday, as relatively steady cash cattle prices offset higher feed costs weighing on the feeder market, traders said.

Meanwhile, lean hog futures continued to slide on a seasonal trend of robust supplies, even as hog slaughter rates showed signs of slowing.

Hog supplies tend to grow each fall, which weighs on the prices and often leads to more volumes of meat pushed into the marketplace, said Don Roose, president of US Commodities in West Des Moines, Iowa.

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Most-active December lean hogs ended down 0.825 cent at 77.325 cents per pound and hit their lowest price since Sept. 24. Front-month October hogs closed down 0.450 cent at 88.200 cents per pound.

Chinese purchases of US beef, however, are continuing to boom, analysts said. China is the biggest beef market and there is still a lot of demand there.

Most-active December live cattle futures settled up 1.300 cents at 130.300 per pound. February live cattle rose 1.100 cents to 134.65 cents per pound.

Most-active November feeder cattle contract rose 1.175 cents to 162.150 cents per pound, while the January contract settled up 0.900 cent to 162.350 cents. (Reporting by PJ Huffstutter; Editing by Devika Syamnath)



financialpost.com

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