U.S. livestock: CME hog, cattle futures decline

Chicago | Reuters — Chicago Mercantile Exchange livestock markets weakened on Monday, with lean hog futures nearing their lowest price in more than four months.

Concerns about lacklustre demand for U.S. pork continued to hang over the market, analysts said.

Seasonally, hog futures also tend to decline around this time of year as pigs fatten up on newly harvested corn, said Don Roose, president of brokerage U.S. Commodities.

“Supplies are picking up,” he said. “Weights are picking up with fresh corn.”

Farmers have harvested 45 per cent of their corn crop so far this autumn, above the five-year average of 42 per cent, according to U.S. government data.

CME December lean hog futures ended down 1.2 cents at 68.3 cents/lb. and hit a session low of 68.125 cents (all figures US$). A fall below 68 cents would bring the contract to its lowest price since it set a low in late May.

The U.S. Department of Agriculture quoted the wholesale pork carcass cutout at $91.22 per hundredweight (cwt), up 72 cents, as belly values soared $7.18.

USDA said separately that meat processors slaughtered an estimated 485,000 hogs on Monday, down slightly from a week ago and a year ago. Cattle slaughtering was also a bit lower, after U.S. ranchers have reduced the size of theirs herds due to drought.

CME December live cattle futures settled down 0.2 cent at 186.55 cents/lb. November feeder cattle futures ended 1.65 cents lower at 249.925 cents/lb.

In other news, Tyson Foods workers and activists rallied outside the U.S. meat company’s headquarters in Arkansas to protest the industry’s use of child labour and push for improved working conditions in processing plants.

— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.