Chicago | Reuters – CME Group live cattle and hog futures fell on Thursday, pressured by growing fears of a recession that could cut demand for pricey meats, traders said.
Losses accelerated due to fund liquidation as the end of the quarter nears.
But feeder cattle futures were firm as falling corn prices raised the prospects for cuts to feeding costs.
After the close, the U.S. Department of Agriculture (USDA) said that frozen beef stocks stood at 519.833 million lbs on May 31, down 2 percentage points from a month earlier but 25 percent higher than a year earlier.
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Frozen pork belly stocks fell to 56.93 million lbs from 58.33 million during May. The total was 55 percent higher than May 2021.
Analysts expect a USDA report on Friday afternoon to show that amount of cattle on feed as of June 1 was 101.4 percent of the total from a year earlier. Cattle placements during May were seen at 99.6 percent of May 2021 total and marketings at 103 percent.
CME July lean hog futures LHN2 fell 3.3 cents to close at 108.55 cents per pound, while the most-active August hogs LHQ2 were 4.65 cents lower at 103.675 cents per pound.
The most-active August live cattle futures LCQ2 dropped 1.05 cents to 133.875 cents per pound. October live cattle LCV2 fell 1.075 cents to 140 cents.
CME August feeder cattle FCQ2 gained 1.7 cent to settle at 174.85 cents per pound.
