Chicago | Reuters — Chicago Mercantile Exchange lean hog futures ended mixed on Thursday, with actively traded nearby months down on weak pork prices and dull demand, while deferred contracts rose on expectations for tighter supplies in coming months, traders said.
The February hog contract was down for the 10th time in 11 sessions and hit its lowest level in three months on weak cash hog prices and as the closely followed wholesale pork cutout value fell to the lowest in nearly two years.
“We’re not seeing great demand from packers and the pork cutout is still drifting lower,” said Matthew Wiegand, broker with FuturesOne.
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The U.S. Department of Agriculture (USDA) quoted the pork cutout at $79.33/cwt on Thursday, down $1.35 from the prior day and lowest since Jan. 20, 2021 (all figures US$).
CME February lean hogs ended 0.55 cent lower at 78.75 cents/lb. while April futures LHJ3 were down 1.225 cents at 87.175 cents/lb. Deferred contracts were 0.55 cent lower to 0.825 higher.
Live cattle futures were mostly lower as beef prices eased and as rallying corn futures pressured feeder cattle contracts.
Limited cash cattle sales at feedlot markets in the Plains were at prices largely steady with last week.
USDA quoted the choice boxed beef cutout at $277.49/cwt on Thursday, down $3.24 from the prior day, while select cuts were down $1.09, at $257.01/cwt.
February live cattle ended 0.2 cent lower at 157.55 cents/lb. while April futures were down 0.4 cent at 160.925 cents. March feeder cattle futures fell 1.275 cents, to 184.275 cents/lb.
— Karl Plume reports on agriculture and ag commodities for Reuters from Chicago.
