Chicago | Reuters—Lean hog futures closed at their lowest price since January at the Chicago Mercantile Exchange on Wednesday as traders focused on a potential oversupply of U.S. pork heading into the summer barbecue season.
U.S. pork production is projected to increase in 2024, while beef production is forecast to drop after ranchers reduced their herds, according to the U.S. Department of Agriculture.
“The trade is nervous about supply outstripping demand as we start summer grilling,” said Mike Zuzolo, president of Global Commodity Analytics. “Pork doesn’t have what beef has, which is tight supplies.”
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Farmers are raising heavier hogs as feed costs Cv1 have declined. The weekly estimated average hog weight for the week ending on Saturday was 290.4 pounds, up from 283.8 pounds from the same period in the previous year, according to USDA data.
A strengthening dollar, which usually makes U.S. goods less desirable, also added to concerns over the export market for U.S. pork.
CME July hog futures LHN24 ended down 1.725 cents at 92.2 cents per pound.
U.S. meatpackers slaughtered an estimated 482,000 hogs, down from 483,000 a week ago but up from 459,455 a year ago, according to the U.S. Department of Agriculture. They processed an estimated 124,000 cattle, compared to 125,000 cattle a week ago and 124,324 cattle a year earlier.
Live cattle and feeder cattle futures weakened slightly as USDA data showed that wholesale boxed beef prices for choice cuts and select cuts sank.
CME August live cattle LCQ24 closed down 0.575 cent at 177.875 cents per pound.
CME August feeder cattle FCQ24 settled down 1.2 cent at 254.825 cents per pound.
