Chicago | Reuters –– Chicago Mercantile Exchange lean hog futures dropped to contract lows on Tuesday on follow-through and technical selling after recent slides, traders said.
Front-month April lean hogs settled down 0.725 cent at 77.05 cents/lb. after hitting a contract low at 77 cents (all figures US$). The contract has lost 12 per cent since reaching a two-week high on March 10.
Thinly traded May hogs set a contract low at 84.4 cents before ending down 0.45 at 84.7. June hogs closed down 0.525 cent at 91.35 cents/lb.
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Chicago Mercantile Exchange feeder cattle futures extended gains to record highs on Wednesday while live cattle futures set a contract high before pulling back.
Wholesale pork values were under pressure again, after a decline last week weighed on futures.
The U.S. Department of Agriculture (USDA) priced pork carcasses at $81.52 per hundredweight (cwt), down 12 cents from Monday. Values weakened for pork loins, butts and bellies but rose for hams.
Cattle futures, meanwhile, edged up. Traders continued to watch Wall Street and outside markets to gauge the health of the economy, which can influence demand for beef, analysts said.
Wall Street closed sharply higher as widespread fears over liquidity in the banking sector abated.
CME April live cattle settled 0.4 cent higher at 162.425 cents/lb. April feeder cattle finished up 0.075 cent at 194.7 cents/lb.
In the wholesale beef market, USDA priced choice cuts of beef at $279.92/cwt, down $1.10 from Monday, while select cuts fell $2.39, to $271.55/cwt.
On Thursday, traders will review monthly cold storage data from USDA.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
