US farm animals provides stay tight
15 August 2023
2 minute learn
Chicago Mercantile Trade (CME) lean hog futures dropped to their lowest degree in six weeks on Monday on technical promoting and plentiful US provides, Reuters reported, bringing up agents.
The marketplace has pulled again after emerging on Aug. 1 to its absolute best value since March.
“Hogs are doing what they do – looking for that near-term backside that tells us that this correction is over,” a dealer mentioned.
Maximum-active October lean hog futures sank 2.175 cents to finish at 79.150 cents in line with pound and touched their lowest value since July 3.
The United States Division of Agriculture (USDA) quoted the wholesale beef carcass cutout at $109.08 in line with cwt, down $1. Cutout values for beef bellies slipped $2.56 to $198.39 in line with cwt.
Beef processors slaughtered an estimated 461,515 hogs, up from 411,000 hogs per week in the past and 444,000 hogs a yr previous, the USDA mentioned in a separate file.
Livestock slaughtering, in the meantime, declined to 119,000 head of farm animals on Monday from 123,000 farm animals per week in the past and 121,000 farm animals remaining yr, the USDA mentioned.
US farm animals provides are tight as drought has diminished the quantity of pasture to be had for grazing and pushed manufacturers to ship extra farm animals to slaughter over the past yr.
Meat packers misplaced an estimated $77.40 for every head of farm animals they processed on Monday, in comparison with a lack of $66 per week in the past, HedgersEdge.com mentioned.
Brazilian meat corporate JBS SA reported a second-quarter loss, partly because of tighter margins for its pork industry in the US, the place it will get maximum of its gross sales.
Maximum-active CME October are living farm animals dropped 0.650 cent to 180.675 cents in line with pound. September feeder farm animals futures slid 1.325 cents to 250.125 cents in line with pound.