Chicago lean hog futures dropped on Monday while cattle futures edged downward.
Most active June lean hogs closed 95.800 cents per pound, down 1.950 cents. April lean hogs closed at 85.700 cents, down 0.425 cents a pound.
Pork carcass cutout value sat at $96.86 per cwt, up $1.00.
After a rebound in early March, lean hog futures have traded in a sideways trajectory.
“It appears hog traders are presently trying to decide if bullish domestic supply and demand elements can overcome the bearish prospect of reduced U.S. pork exports amid a major trade spat between the U.S. and other major countries,” wrote analyst Jim Wyckoff.
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U.S. livestock: Feeder cattle extend rally to new highs
Chicago Mercantile Exchange feeder cattle futures extended gains to record highs on Wednesday while live cattle futures set a contract high before pulling back.
This includes a 10 per cent tariff imposed by China on a range of goods, including pork.
Meanwhile, feeder cattle futures hit new highs last week and live cattle futures also rallied, said Wyckoff.
“Record-high cattle prices are a bullish factor for hogs/pork from the perspective of substitution demand from the consumer at the meat counter. Retail beef prices are on the rise,” he wrote.
Live cattle and most feeder cattle contracts posted slight losses on Monday, seeing a modest correction to start the week.
Most active June live cattle settled at 202.150 cents a pound, down 0.625 cents. August live cattle closed at 199.050 cents a pound, down 0.300 cents.
Most active May feeder cattle closed at 284.850 cents a pound, down 0.250 cents. August feeders settled at 288.500 cents, down 0.325 cents per pound.
Choice boxed beef closed at $327.10 per cwt, up $1.65. Select boxed beef settled at $313.58, up $3.96 per cwt, the USDA reported.
