Chicago | Reuters — Lean hog futures on the Chicago Mercantile Exchange eased for a fifth consecutive session on Tuesday, pressured by a combination added seasonal supply and deflated demand as China faces protests over COVID-19 lockdowns.
“This three-week period, we’re pushing a large supply of hogs through the system,” said Rich Nelson, chief strategist at Allendale, Inc. “Typically, this market does like to break on a seasonal basis, through the first week of December.”
Nelson said uncertain export demand to China is adding to normal seasonal pressure.
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The CME February lean hogs contract lost 0.6 cents to 84.15 cents/lb. after falling to 84.025 cents, the contract’s lowest since Oct. 17 (all figures US$).
The nearby December hog contract added 0.475 cents to end at 81.075 cents/lb.
Processors slaughtered 494,000 hogs on Tuesday, up 15,000 from the same week a year ago.
Meanwhile, live cattle futures firmed, supported by tight cattle supplies, though seasonal pressures loom.
“Cattle does have a good story, but it has a seasonal price move in front of it,” said Nelson. “There’s a quick, short term, very severe drop ahead.”
CME benchmark February live cattle gained 0.125 cent, to 154.8 cents/lb. The spot December contract added 0.1 cent, to 152.675 cents/lb.
CME January feeder cattle finished up 1.125 cents at 178 cents/lb.
Boxed beef prices fell on Tuesday, with choice cuts losing $1.18, to $253.35/cwt, while select cuts fell $1.99, to $226.54/cwt.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
