Chicago | Reuters — Chicago Mercantile Exchange cattle and hog futures ended mostly lower on Thursday on eroding meat packer margins and as soaring inflation raises demand concerns, traders said.
Technical selling and profit-taking further fueled declines in livestock futures after live cattle and lean hog contracts touched 2-1/2-week highs this week.
A U.S. Labor Department report on Thursday showed consumer prices increased by more than expected last month, including food prices.
CME December live cattle fell 0.525 cent, to 147.925 cents/lb., after the most actively traded contract touched its highest level since Sept. 26 a day earlier (all figures US$).
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CME November feeder cattle ended down 0.575 cent at 176.1 cents/lb.
CME December lean hog futures shed 0.1 cent to settle at 80.6 cents/lb. after touching its highest since Sept. 26 during the trading session.
The average beef packer margin weakened on Thursday to negative $6.35 per head, down from a negative $5.30 on Wednesday and a positive $22.50 a week ago, according to livestock marketing advisory service HedgersEdge.com.
Pork packer margins narrowed to $14.45 per head, down from $18.95 a day earlier but up from negative 15 cents last week.
— Karl Plume reports on agriculture and ag commodities for Reuters from Chicago.
