Chicago | Reuters — Chicago Mercantile Exchange lean hog futures on Friday extended a rebound from a selloff that dragged the market to its lowest prices since February this week, while cattle futures sagged.
The hog market was due for a correction to the upside after the most-active December contract fell 13.5 per cent from the start of the month to a seven-month low on Thursday, traders said.
“It was a pretty substantial break that we’ve had,” said Ted Seifried, chief ag market strategist for Zaner Ag Hedge Group.
CME December hogs ended up 0.6 cent at 75.05 cents/lb. and touched their highest price since Monday (all figures US$). On Thursday, the contract hit 71.275 cents/lb., its lowest price since Feb. 19.
October lean hog futures ended up 0.25 cent at 85.725 cents/lb. and topped a one-week high. The contract on Tuesday sank to its lowest price since March 4.
Some brokers said the market appears to have established a near-term floor for prices after the recent declines.
In CME cattle futures, prices weakened with boxed beef values.
Choice cuts of boxed beef tumbled by $3.53, to $314.47/cwt, while select cuts dropped 52 cents, to $279.75/cwt, according to the U.S. Department of Agriculture.
“You’ve got concerns about boxed beef prices potentially falling apart,” Seifried said.
CME December live cattle settled down 1.05 cents at 127.525 cents/lb. November feeder cattle dropped 1.2 cents to close at 156.1 cents.
In global export news, Russia imposed restrictions on Brazilian meatpackers after two atypical cases of BSE were detected this month, the Valor Economico newspaper reported.
Brazil, the world’s largest beef exporter, also temporarily suspended its shipments to its No. 1 customer China, in line with a health protocol signed between the two countries.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.