By Theopolis Waters
CHICAGO, Aug 14 (Reuters) – Chicago Mercantile Exchange
Hogs slumped Thursday to a four-month low on profit taking following lower cash hog and wholesale pork prices, traders and analysts said
The wide disparity between the new lead-month October contract and the spot August trading month, which expired on Wednesday at 102.425 cents, played a role in futures’ sizable drop on Thursday
CME hog October settled at 87.300 cents per lb, 0.850 cent lower. December finished at 84.025 cents, down 0.650 cent
U.S. Department of Agriculture data on Thursday afternoon quoted the wholesale pork price, or cutout, at $102.71 per hundredweight (cwt), which was down 43 cents from Wednesday
Read Also
ICE Midday: Canola tumbles to start week
Glacier FarmMedia | MarketsFarm — Canola futures on the Intercontinental Exchange opened the week’s trading with downward momentum, largely due…
Separate USDA data showed the average hog price at the closely watched Iowa/Minnesota market on Thursday afternoon at $97.05 per cwt, down 92 cents from Tuesday
Grocers are waiting for pork prices to come down before topping off inventories for the Sept. 2 U.S. Labor Day holiday, the last grilling holiday of the summer, said traders
The seasonal increase in hog numbers afforded packers all the supplies they need for the rest of this week’s slaughter while pumping more pork into the retail sector
From Monday to Thursday, packers processed 1.688 million hogs, 68,000 more than last week and 9,000 more than a year ago for the same period
PROFIT TAKING CLIPS CATTLE
CME live cattle posted modest losses as traders took profits as they waited for cattle in the cash market to change hands, analysts and traders said
August live cattle futures closed down 0.300 cent at 123.700 cents per lb and October settled at 128.100 cents, off 0.075 cent
“I was expecting some type of correction in the market after being up three straight days,” Oak Investment Group president Joe Ocrant said
He said futures’ recent upswing and solid wholesale beef demand are supportive for cash cattle prices
Cash cattle bids in the U.S. southern Plains were at $119 per hundredweight (cwt) versus $123 to $124 asking prices, feedlot operators said
Last week, cash cattle in Texas and Kansas fetched $121 per cwt. Live-basis cattle in Nebraska sold at $123.50 a week ago
The government on Thursday afternoon reported the wholesale price of choice beef up 95 cents per cwt from Wednesday to $193.30. Select cuts climbed $1.01 to $185.71
CME August feeder cattle drew support from higher prices for cattle in the closely watched Oklahoma City market
Profit taking and modest live cattle futures losses weakened remaining feeder cattle contracts
August feeders closed at 154.100 cents, 0.500 cent per lb higher. September closed down 0.375 cent to 157.075 cents and October ended 0.500 cent lower at 159.350 cents.
