Chicago | Reuters — Front-month U.S. hog futures fell on Tuesday for a second straight session on technical selling and doubts about whether trade talks this week between China and the U.S. would ease tensions, traders said.
CME Group live cattle futures settled modestly higher while feeder cattle futures declined.
Most-active CME October lean hog futures settled down 0.25 cent at 56.225 cents/lb. (all figures US$). December fell 0.325 cent at 53.9 cents while back months closed higher.
Nearby hog futures were pressured in part by uncertainty about this week’s U.S.-China trade talks. U.S. President Donald Trump told Reuters on Monday he did not expect much progress from the talks in Washington.
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As part of a trade standoff, Beijing has put tariffs on U.S. pork, slowing shipments of U.S. supplies to one of its biggest customers.
“Until we know what is going to happen on the tariff front, the hogs might struggle up here, especially with cash trading at a bearish discount to futures,” said Jeff French, analyst with Top Third Ag Marketing.
Live cattle futures edged higher, supported by expectations of a pick-up in packer demand ahead of the Labour Day weekend, the last big grilling weekend of the summer.
Traders also await the U.S. Department of Agriculture’s monthly Cattle on Feed report on Friday. Analysts surveyed by Reuters on average expect the government to report a year-on-year increase in the number of cattle on feed as of Aug. 1.
CME August live cattle futures ended up 0.2 cent at 109.275 cents/lb. The most-active October live cattle contract rose 0.025 cent, to 110.475 cents.
CME August feeder cattle futures fell 0.45 cents to settle at 149.175 cents/lb. and September feeders were down 0.1 cent, at 151 cents.
— Julie Ingwersen is a Reuters commodities correspondent in Chicago.
