October lean hog futures end up
30 August 2024
2 minute read
Chicago Mercantile Exchange (CME) live and feeder cattle futures fell on Thursday on a decline in boxed beef prices, which have slumped leading up to the US Labor Day holiday, Reuters reported, citing analysts.
Select boxed beef prices declined by $1.09 to $296.54 per hundredweight (cwt) though choice cuts increased by 0.94 cents to $308.23 per cwt, US Department of Agriculture data showed on Thursday morning.
On Wednesday, choice boxed beef prices declined by $4.68 to $307.29 per cwt, and select cuts dropped $2.62 to $297.63 per cwt.
“Retail buying ahead of Labor Day has passed, so boxed beef prices dropped,” Austin Schroeder, analyst at Bruegler Marketing, said.
Most-active CME October live cattle closed down 0.725-cent at 177.9 cents per pound. Most-active CME October feeder cattle finished down 1.9 cents at 236.675 cents per pound.
On Thursday morning, the US Commerce Department reported the US economy grew faster than initially thought in the second quarter amid strong consumer spending, while corporate profits rebounded, which should help to sustain the expansion of the US economy.
Despite signs of positivity in the US economy, back month live and feeder cattle contracts have continued to drop as traders factor in a potential recession.
“The market is pricing in recession risk and some possible hit to the beef market,” Rich Nelson, strategist at Allendale, said.
Analysts said prices in the cash cattle market this week have stayed steady to lower, on lackluster buying interest from packers who are busy unloading their beef supplies ahead of the Sept. 2 holiday, market analysts said.
Meanwhile, hog futures ticked higher during a day of technical trading, market analysts said, as wholesale prices mostly turned lower.
CME October lean hog futures ended up 0.5 cents to 82.175 cents per pound.