By Theopolis Waters
CHICAGO, Aug 10 (Reuters) – Chicago Mercantile Exchange lean hogs extended losses into a fourth straight session on Monday as hefty supplies stifled cash and wholesale pork prices, traders said.
Spot-August futures closed down 0.675 cent per pound at 76.650 cents, and most-active October closed 1.150 cents lower at 62.975.
On Monday, packers processed 426,000 hogs, 53,000 more than last Monday when some plants were closed for an annual floater holiday, based on U.S. Department of Agriculture estimates.
Market-ready, or cash, hogs in the Midwest Monday morning traded steady to $1 per hundredweight (cwt) lower than on Friday, according to regional hog dealers.
Read Also
U.S. grains: Chicago wheat futures dip on global supply pressure; corn, soybeans fall
Chicago | Reuters – Chicago Board of Trade wheat futures fell on Friday and notched a weekly loss, as plentiful…
“October futures trading at about 63.000 cents is enough incentive for farmers to keep hogs moving,” a trader said.
Grocers are not having problems finding enough product for Labor Day holiday grilling demand, he said.
CATTLE UP, BUT OFF MORNING HIGHS
CME live cattle retained some of their initial gains driven by Friday’s strong cash and wholesale beef prices, but eased from session tops while awaiting this week’s cash sales, traders said.
Spot-August futures closed 0.675 cent per pound higher at 150.250 cents, and October up 0.775 cent at 149.300 cents.
Late last week, cash cattle in the U.S. Plains sold at mostly $150 to $152 per cwt, as much as $5 higher than the week before, feedlot sources said.
Monday morning’s wholesale Choice beef price had climbed $1.41 from Friday to $237.75 per cwt. Select cuts rose $1.05 to $231.19, the USDA said.
“I think the psychology is not strong enough to take (futures) up hard. It’s just a grinder,” said David Hales, author of the Hales Cattle Letter.
Market ready supply is still exceptionally tight and a supply increase is a few months away, he said.
The government on Monday estimated that at 107,000 head of cattle, packers processed 6,000 fewer than last year.
Next month, beef may find its way into meat cases of supermarkets that might feature less pork until National Pork Month in October, an analyst said.
CME feeder cattle were supported by live cattle futures advances, but pressured by sharply higher corn prices.
August finished up 0.125 cent per lb. to 214.250 cents, and September down 0.200 cent to 210.375 cents.
