Chicago | Reuters — CME live hog futures fell to a two-month low on Monday, notching their fifth straight day of declines on concerns that Chinese pork consumption will fall during the country’s upcoming Lunar New Year celebrations, traders said.
Cattle futures were firm, with strength in the cash market underpinning prices.
Weakness in Chinese markets spilled over to CME hog futures. China’s most active hog futures contract closed down 6.6 per cent at its lowest level since it was launched almost two years ago.
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Cattle futures on the Chicago Mercantile Exchange were weaker on Monday, coming down from recent highs.
Concerns about rising COVID-19 cases in China following the easing of virus-related restrictions in the world’s top consumer of pork pressured hog markets.
Boxed beef prices rose on Monday, with choice cuts gaining $8.09, to $257.02/cwt, while select cuts rose $4.42, to $225.68/cwt, USDA said (all figures US$).
CME February lean hogs dropped 0.3 cent, to 83.7 cents/lb., bottoming out at 82.8 cents, their lowest since Oct. 14. Nearby December hogs edged up 0.375 cent, to 81.95 cents/lb., in thin trading ahead of the contract’s expiration on Friday.
The CME’s lean hog index, a two-day weighted average of cash hog prices, eased 48 cents to $81.99/cwt.
CME benchmark February live cattle gained 0.55 cent, to 156.1 cents/lb., while the spot December contract firmed 0.725 cent, to 154.4 cents/lb.
CME January feeder cattle eased 0.275 cent, to 183.65 cents/lb.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.
