Chicago | Reuters — Chicago Mercantile Exchange lean hog futures pulled back on Tuesday as the market consolidated after climbing nearly five per cent during the previous session, brokers said.
CME December hogs closed 1.475 cents, or 1.7 per cent, lower at 85.575 cents/lb. (all figures US$).
Wholesale pork prices were also lower. The U.S. Department of Agriculture quoted the U.S. pork carcass cutout value at $95.03 per hundredweight (cwt), down by $1.92 from Monday.
On Wednesday, traders and analysts will review monthly USDA supply and demand data on pork and beef and crops like corn that are fed to livestock.
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U.S. livestock: Cattle futures come down from highs
Cattle futures on the Chicago Mercantile Exchange were weaker on Monday, coming down from recent highs.
In the cattle markets, CME December live cattle settled flat at 153.05 cents/lb. Feeder cattle futures were little changed, with the most-active January contract down 0.025 cent at 179.9 cents/lb.
Wholesale beef prices edged higher. Choice cuts were up 39 cents at $264.94/cwt, USDA data showed. Select cuts rose 13 cents, to $236.05/cwt.
Meat processors slaughtered an estimated 129,000 cattle on Tuesday, up from 128,000 cattle a week ago and 124,000 cattle a year ago, USDA said separately. Processors killed an estimated 491,000 hogs, up from 482,000 hogs a week ago and 477,000 hogs a year ago, the agency said.
Meatpackers’ margins also improved. Margins for beef processors were $84.75 per head of cattle on Tuesday, up from $74.05 on Monday and $83.25 a week earlier, livestock marketing advisory service HedgersEdge.com said. Margins for pork processors were $12.70 per hog, up from $9.65 a day earlier and $11.70 a week ago.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
