Chicago | Reuters — Chicago Mercantile Exchange live cattle futures dropped to a six-month low and feeder cattle hit a nine-month low on Friday, while lean hog futures sank by the daily exchange-imposed trading limit.
Follow-through selling pushed down cattle contracts after a string of losses in the markets, brokers said. Recent weakness in wholesale beef prices and cash cattle trading also weighed on futures, they said.
The livestock complex came under further pressure from uncertainty over the Ukraine crisis, which pushed some traders to the sidelines, brokers said. The war has catapulted grain futures higher, raising production costs for livestock producers who use the crops for feed.
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CME April live cattle tumbled 1.9 per cent, or 2.575 cents, to end at 135.775 cents/lb. and reached its lowest price since Sept. 13 (all figures US$). The contract lost four per cent for the week.
April feeder cattle dropped two per cent, or 3.275 cents, to finish at 157.25 cents/lb. and touched its lowest price since June 1. It was down about five per cent for the week.
Live cattle and feeder cattle futures are oversold, a commodity broker said.
Choice cuts of boxed beef eased by two cents, to $254.33/cwt, the U.S. Department of Agriculture said. Select cuts rose by 63 cents, to $248.41/cwt, after a steep fall on Thursday.
Cash cattle trading this week was steady to down from last week, with light demand seen on Friday, traders said.
CME April lean hog futures closed down 4.5 per cent, or the 4.75-cent daily limit, to end at 100.45 cents/lb. The contract hit its lowest price since Feb. 7. June hogs slid four per cent, or 4.75 cents, to finish at 111.75 cents/lb.
The trading limit will temporarily widen to seven cents on Monday, exchange owner CME Group said.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
