Chicago | Reuters — Chicago Mercantile Exchange cattle and hog futures weakened on Friday in anticipation of a seasonal demand slowdown following the Labour Day holiday, traders said.
The losses in the futures market stemmed from weekly declines in the cash markets.
CME benchmark October live cattle fell 1.25 cents to close at 104.9 cents/lb., hitting its lowest since July 28 (all figures US$). The contract closed below its 50-day moving average for the first time since June 28.
Cattle supplies are in focus following a bearish Cattle on Feed report from the U.S. Agriculture Department on Aug. 21.
October feeder cattle dropped 0.975 cent to 140.175 cents/lb.
“Live cattle futures are now a quick $5 off their highs of last week and feeders $9, all ahead of what the industry expects to be a seasonal late summer correction across the cash markets and beef markets post-Labor Day,” brokerage StoneX said in a note to clients.
CME October lean hogs fell 2.075 cents to close at 53.65 cents/lb.
USDA said the daily cattle slaughter fell by 3,000 head to 116,000 on Friday. The hog slaughter was down 1,000 at 481,000 head.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.