Chicago | Reuters – Chicago Mercantile Exchange lean hog futures fell on Thursday, pressured by declining demand and expectations of greater supplies of market-ready hogs heading into the fall, analysts said.
“You had a cutout that took a big step back yesterday. You had export numbers that weren’t especially supportive this morning, and the fact that the supply coming to market the last eight weeks has been quite a bit higher than expected,” said Alton Kalo, economist at Steiner Consulting Group.
Nearby August lean hog futures LHQ3 slipped 1.675 cents to 101.000 cents per pound, while the most-active October contract LHV3 lost 2.825 cents to 82.050 cents per pound.
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Pork cutout regained late Thursday, adding $4.00 to $115.63 per cwt. after falling on Wednesday, according to the U.S. Department of Agriculture.
Pork packer margins fell to $2.42 to $8.00 per head, HedgersEdge.com said.
An estimated 470,000 hogs were slaughtered, up from 468,000 a year prior, according to the USDA.
Meanwhile, live cattle futures firmed slightly.
CME August live cattle futures LCQ3 added 0.475 cents to 178.500 cents per pound. Most-active October live cattle LCV3 lifted 0.800 cents to settle at 181.300 cents per pound.
“It seems like the market doesn’t have a ton of moves to trade. The cutout is flat, and is trying to take its queues from the cash market. But the cash market is taking longer to develop,” said Kalo.
The cash cattle market has been quiet this week, with cattle in the northern U.S. plains trading at $186, while the southern plains saw $178 to $179.
Boxed beef prices were mixed, with choice cuts falling $1.17 to $302.01 per cwt., while select cuts added 81 cents to $278.31 per cwt., the USDA said.
Beef packer margins climbed to $50.74 a head, according to HedgersEdge.com.
September feeder cattle FCU3 futures added 1.550 cents to 251.650 cents per pound.
