Chicago | Reuters — Chicago Mercantile Exchange lean hog futures dropped to their lowest level in six weeks on Monday on technical selling and ample U.S. supplies, brokers said.
The market has pulled back after rising on Aug. 1 to its highest price since March.
“Hogs are doing what they do — trying to find that near-term bottom that tells us that this correction is over,” a broker said.
Most-active October lean hog futures sank 2.175 cents to end at 79.15 cents/lb. and touched their lowest price since July 3 (all figures US$).
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
The U.S. Department of Agriculture (USDA) quoted the wholesale pork carcass cutout at $109.08/cwt, down $1. Cutout values for pork bellies slipped $2.56, to $198.39/cwt.
Pork processors slaughtered an estimated 461,515 hogs, up from 411,000 hogs a week ago and 444,000 hogs a year earlier, USDA said in a separate report.
Cattle slaughtering, meanwhile, declined to 119,000 head of cattle on Monday from 123,000 cattle a week ago and 121,000 cattle last year, USDA said.
U.S. cattle supplies are tight as drought has reduced the amount of pasture available for grazing and driven producers to send more cattle to slaughter over the last year.
Meat packers lost an estimated $77.40 for each head of cattle they processed on Monday, compared with a loss of $66 a week ago, HedgersEdge.com said.
Brazilian meat company JBS reported a second-quarter loss, in part due to tighter margins for its beef business in the U.S., where it gets most of its sales.
Most-active CME October live cattle dropped 0.65 cent, to 180.675 cents/lb. September feeder cattle futures slid 1.325 cents, to 250.125 cents/lb.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
