Lean hogs dip as seasonal pressures mount
24 August 2023
2 minute learn
Chicago Mercantile Alternate (CME) lean hog futures fell for a 3rd consultation on Wednesday, as seasonal power combined with weaker beef costs, Reuters reported, bringing up analysts.
“This time of yr for October hogs, it is difficult to grasp which route to head in,” mentioned Joe Kooima, commodity dealer at Kooima Kooima Varilek Buying and selling Inc, noting the basic headwinds including to seasonal power.
“Money is weaker, cutout is weaker, weights are slightly bit upper than a yr in the past, in order that’s strike one, strike two, strike 3.”
Essentially the most-active October futures misplaced 1.025 cents to 78.550 cents in line with pound.
Day by day hog slaughter of 473,000 head was once down from 482,000 the similar length remaining yr, in line with the USA Division of Agriculture (USDA).
The USDA quoted the wholesale beef carcass cutout at $100.79 in line with cwt, down 2.86 cents from Tuesday.
Reside farm animals futures eased moderately, missing route as money industry stays gentle and analysts wait to peer the have an effect on of top temperatures throughout the USA Plains.
“Closing week, we simply did not in reality have a excellent money quantity. So it’s important to lift that quantity into the following week, till we pay attention extra,” mentioned Kooima. “It’s simply the doldrums.”
Maximum-active October are living farm animals added 0.050 cents to 178.675 cents in line with pound. October feeder farm animals slipped 0.350 cents to near at 250.875 cents in line with pound.
Packers were slowing farm animals slaughter, most effective processing 118,000 head, down from 124,000 the similar length remaining yr, the USDA mentioned.
Pork packer margins perked as much as 64.30 in line with head, in line with Denver-based Hedgers Edge.
Boxed pork costs have been steady-firmer, with selection cuts flat at $317.05 in line with hundredweight (cwt), whilst choose cuts added $2.08 to $291.59 in line with cwt., in line with the USA Division of Agriculture.