Are living farm animals ease on softer money markets
4 September 2023
2 minute learn
Chicago Mercantile Trade (CME) reside farm animals futures eased on Friday, finishing the week fairly decrease as money industry eased, regardless that the farm animals marketplace continues to industry most commonly sideways, Reuters reported, mentioning analysts.
“The marketplace’s principally announcing – we’ve got were given solid industry at the moment for a pair months,” mentioned Wealthy Nelson, leader strategist at Allendale Inc. “We are all looking forward to the following drop off in provide which isn’t gonna be coated up till the fourth quarter, or into the primary part of subsequent yr.”
Probably the most-active October reside farm animals eased 0.675 cents to 180.150 cents in keeping with pound, whilst October feeder farm animals misplaced 1.375 cents to 254.650 cents in keeping with pound.
For the week, October reside farm animals eased 0.57%, whilst October feeder farm animals added 0.27%.
Money farm animals traded $2.00 decrease within the northern plains, round $182.00 in keeping with cwt., whilst the southern plains used to be stable to $1.00 decrease at $178.00 to $179.00 in keeping with cwt.
Red meat packers are set to slaughter 629,000 head this week, 13,000 fewer than the similar length a yr in the past, america Division of Agriculture (USDA) mentioned.
Boxed red meat costs firmed, with selection cuts including 70 cents to $314.49 in keeping with cwt., whilst make a selection cuts received $1.04 cents to $290.29 in keeping with cwt, the USDA mentioned.
In the meantime CME lean hog futures added, as investors look ahead to indicators of greater call for, whilst a seasonal build up in hog provides added force.
“October is Nationwide Red meat Month and procurement for that begins actually within the first week of September,” mentioned Nelson. “we are nonetheless constant at the decrease downtrend for money markets, so now we have now not but noticed that procurement get started.”
Probably the most-active October lean hog futures inched up 0.500 cent to 83.050 cents in keeping with pound.
For the week, October hogs received 4.04%.
Red meat processors had been heading in the right direction to slaughter 2.39 million head, up 18,000 from the similar length remaining yr, the USDA mentioned.
The CME’s Lean Hog Index, a two-day weighted moderate of money costs, remaining fell to 89.26 cents in keeping with pound, its lowest since June 19.
Wholesale red meat carcass cutout added $1.48 to $93.70 in keeping with cwt.