September 21, 2017 / 10:15 PM / a month ago

LIVESTOCK-CME Oct hog futures fall to contract low on cash declines

    By Michael Hirtzer
    CHICAGO, Sept 21 (Reuters) - Chicago Mercantile Exchange
October lean hog futures        fell sharply to a contract low
on Thursday, weighed down by a months-long decline in cash
prices and abundant supplies, traders said.
    Deferred hog futures contracts         as well as most live
cattle         and feeder cattle contracts         also eased on
technical selling and profit-taking.
     Traders were squaring positions ahead of U.S. Department of
Agriculture data due after the close of trading on Friday in
which the government will report how many cattle were placed on
feed in August and how much meat was in cold storage.
    CME October hogs dropped 1.325 cents to 57.325 cents per
pound, finishing just above the earlier contract low of 57.075
cents. The most-active December hogs contract        fell 2.125
cents to 57.800 cents, easing from Wednesday's two-week high.
    The CME Group's index of the cash hog market        has been
on a downward trajectory since July and was hovering at the
lowest levels since April.
    USDA said hogs in the top cash market of Iowa and southern
Minnesota were down 85 cents to $49.43 per cwt.         
    "Just too many," Kooima and Kaemingk Commodities Inc broker
Scott Varilek said of hogs.
    A few analysts expected USDA on Friday to show 573.5 million
pounds of pork in cold storage in August and 426.5 million
pounds of beef. 
    A Reuters poll of analysts expected the USDA to show cattle
placed in feedlots for fattening in August down 2.9 percent from
last year, suggesting that fewer animals would reach slaughter
weight in February and March.             
    Cattle futures which surged by the most in 11 months on
Wednesday declined on Thursday as investors locked in profits
ahead of the USDA reports and as dealers awaited cash cattle
sales in the Plains.
    "The pretty big jump yesterday has people holding off,"
Varilek added. "Some bullish Cattle on Feed estimates were
priced in."
    CME October live cattle        eased 0.850 cents to 110.100
cents per pound and most-active December live cattle        down
0.050 cent to 116.200 cents.
    CME October feeder cattle        were off 1.400 cent to
155.875 cents per pound.

 (Additional reporting by Theopolis Waters; Editing by Tom
Brown)
  

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below