CHICAGO, April 1 (Reuters) – U.S. lean hogs tumbled to the lowest in 10 weeks on Friday as pork price declines triggered selling by technical traders and investment funds, traders and analysts said.
Hogs fell more than one percent at the Chicago Mercantile Exchange, led by losses in deferred contracts such as June and August futures. The lowest corn prices in 9 ½ months, after a larger than expected U.S. Department of Agriculture acreage outlook on Thursday, prompted ideas of hog herd expansion amid cheaper feed costs.
Hogs for April delivery settled 0.550 cent lower at 67.800 cents per lb, lowest since Jan. 21 and the third straight session of losses. Wholesale pork prices retreated from a nearly two-month high, suggesting flagging demand from grocers and consumers.
“Lean hogs (saw) additional chart-related selling fueled by Thursday’s drop in product prices,” INTL FCStone analyst Arlan Suderman said in a note to clients.
Live and feeder cattle futures were mostly lower, with feeder cattle consolidating after surging on Thursday as corn declined. Feeder cattle and corn prices typically move in opposite directions, as lower-priced feed improves margins for ranchers and can boost prices for cattle.
Cash fed cattle fetched lower prices this week in the southern U.S. Plains, moving at mostly $133 per cwt, down about $3 from last week.
Cattle futures prices have declined sharply in recent weeks, on Thursday falling to about 1 ½ month lows. Technically oversold futures provided mild support to finish the week, resulting in only modest losses in most contracts.
“Seasonal (tendencies) would suggest we’ve reached a short-term bottom and could rebound into April,” Allendale Inc analyst Rich Nelson said.
