Chicago | Reuters — Chicago Mercantile Exchange lean hog futures fell on Thursday, dragged by technical selling and profit-taking following a recent rally to contract highs.
Tight U.S. hog supplies had fueled the recent gains and remained a supportive factor, but the market was oversold.
“We had a key reversal in April hogs yesterday and that often signals an intermediate or major top. We’ve added a lot of risk premium to the market so we’ve really just taken some of that premium out,” said Don Roose, president of U.S. Commodities in West Des Moines, Iowa.
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April lean hogs finished down 1.775 cents at 94.675 cents/lb. The benchmark contract notched contract highs in each of the past five sessions but closed lower on Wednesday, signaling the technical reversal.
CME live cattle futures ended lower as higher rates of slaughter were expected to bolster beef supplies and pressure meat prices.
The choice boxed beef cutout fell 35 cents on Thursday to $289.11/cwt, while the select cutout shed 62 cents to $279.10/cwt, according to the U.S. Department of Agriculture.
CME April live cattle futures ended down 0.275 cent at 141.625 cents/lb.
March feeder cattle futures were down 1.3 cents at 159.5 cents/lb.
— Karl Plume reports on agriculture and ag commodities for Reuters from Chicago.
