Chicago | Reuters — CME cattle futures fell on Wednesday as traders assessed higher feeding costs due to a sharp gains in corn.
Hog futures were also weak, falling for the sixth time in seven sessions, with prospects for more COVID-19 lockdowns in China further chilling the already weak export demand from the world’s top consumer of pork.
Feeder cattle contracts notched the biggest decline, with the most-active August contract shedding 2.4 per cent and hitting its lowest since Nov. 2.
“The unending rally in corn is certainly the focus,” said Rich Nelson, analyst at Allendale Inc.
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Chicago Board of Trade corn futures jumped to their highest in nearly 10 years on Thursday.
Benchmark June lean hogs settled down 0.825 cent at 110.35 cents/lb. (all figures US$).
Technical support for June hogs was noted at the low end of its 20-day Bollinger range for the second day in a row.
CME June live cattle futures dropped 1.225 cents to settle at 135.025 cents/lb., falling below their 20-, 30-, 40- and 200-day moving averages.
CME feeder cattle also were weaker, with May dropping 3.375 cents to 157.35 cents/lb. and most-active August feeders down 4.2 cents at 168.95 cents/lb.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.
