U.S. livestock: Hog futures slide in technical correction

Chicago | Reuters – Chicago Mercantile Exchange lean hog futures ticked lower on Monday in a technical pullback after futures surged in the previous session, traders said.

The U.S. Department of Agriculture in its quarterly Hogs and Pigs report on Thursday said the nation’s inventory on September 1 was 74.5 million head, down 1.3 per cent from a year earlier. Analysts had on average predicted a 0.3 per cent increase.

CME December hogs closed 0.70 cent lower at 90.35 cents per pound.

CME December live cattle fell 0.475 cent to end at 233.825 cents per pound. CME November feeder cattle fell 0.60 cent to end at 353.875 cents per pound.

Declining wholesale beef prices have weighed on live and feeder cattle futures.

Wholesale beef prices have continued a seasonal decline as weather cools and grilling season is put in the rearview mirror. The USDA priced choice cuts of beef was at $370.68 per hundredweight (cwt) on Monday afternoon, down 75 cents. Select cuts also fell $3.55 to $348.89 per cwt.

The USDA reported a week ago that there were 11.1 million cattle in U.S. feedlots as of September 1, down 1.05 per cent from a year earlier. Analysts had expected a smaller drop of 0.9 per cent.

Traders remained on edge about the spread in Mexico of New World screwworm, a damaging livestock pest, after the USDA said on Sunday that Mexico had confirmed a case less than 70 miles from the U.S. border.