Lean hog futures near one-month lows – CME

Lean hog futures hit their lowest level in about four weeks on Wednesday before ending mixed as traders adjusted positions before the Thanksgiving holiday.

The market has dropped about 8% since rising on Nov. 7 to the highest price in more than a month, as ample US supplies are looming over futures.

Meatpackers slaughtered an estimated 450,000 hogs on Wednesday, up from 448,000 hogs a year earlier, the US Department of Agriculture said. On Thursday, CME markets will be closed for Thanksgiving.

December lean hog futures ended up 0.100 cent at 68.275 cents per pound at the CME after falling earlier to the lowest price since Oct. 26. February lean hog futures touched their lowest price since Oct. 27 before ending down 0.500 cent at 71.825 cents per pound.

Livestock traders are waiting for the US to issue weekly pork and beef export sales data on Friday, a day later than usual because of Thanksgiving.

The USDA quoted the wholesale pork carcass cutout at $84.68 per cwt on Wednesday, down $0.53, as belly values slid.

In a separate monthly report, the USDA said frozen stocks of pork bellies as of Oct. 31 were down 6% from last month and 31% from last year. Total frozen pork supplies were down 6% from the previous month and 14% from last year, while beef supplies were up 6% from the previous month and down 13% from last year.

Boxed beef prices on Wednesday eased by $1.15 to $267.62 per cwt for select cuts and rose by $1.19 to $297 per cwt for choice cuts, according to USDA data.

CME February 2024 live cattle futures sagged 0.800 cent to settle at 175.275 cents per pound and stayed within Tuesday’s trading range. January 2024 feeder cattle lost 1.2 cents to end at 227.125 cents per pound.

Tags: price, estimate, Beef, lean hog, futures, Market, supplies, live cattle