Money marketplace units tone for futures marketplace on Monday
6 November 2023
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Chicago Mercantile Trade (CME) hog futures closed decrease on Friday, backing out on a spherical of profit-taking after the benchmark December contract rose to its very best degree in a month, reported Reuters.
Cushy money hog values, weaker wholesale red meat costs and a big weekly hog slaughter added to bearish sentiment.
“We now have had a gorgeous excellent rally and (the marketplace) used to be simply due for a pullback,” stated Doug Houghton, an analyst for Brock Buddies.
CME December lean hog futures settled down 1.525 cents at 71.750 cents consistent with pound, backing out after a climb to 73.625 cents, the contract’s very best degree since Oct. 6. Nonetheless, the contract ended the week up 1.8%.
The CME’s Lean Hog Index, a two-day weighted moderate of money costs, fell to 76.84 cents consistent with pound, its lowest studying since mid-Would possibly.
The United States Division of Agriculture (USDA) estimated this week’s US hog slaughter, together with Saturday’s projected kill, at 2.677 million head, up 4% from the similar length a 12 months in the past.
Within the wholesale red meat marketplace, the federal government priced red meat carcasses on Friday afternoon at $87.28 consistent with hundredweight (cwt), down 13 cents from the day gone by.
CME farm animals futures fell, with the bellwether December are living farm animals contract final underneath Thursday’s low, reversing after posting a two-week top in early strikes.
CME December are living farm animals futures settled down 0.800 cent at 183.875 cents consistent with pound and February ended down 1.200 cents at 185.225 cents.
CME feeder farm animals futures confronted further force from a rally in CBOT corn futures that signaled upper prices for feed. January feeder farm animals settled down 2.425 cents at 239.750 cents consistent with pound.
Money farm animals industry had but to increase by way of Friday afternoon, investors stated. Feedlots within the southern Plains have been retaining out for upper costs after fats farm animals modified palms closing week at round $185 consistent with cwt.
“No matter occurs within the money marketplace goes to set the tone for (futures on) Monday morning,” Houghton stated.
Wholesale red meat costs declined. The USDA priced selection cuts of red meat on Friday at $302.34 consistent with cwt, down $2.19 from Thursday, and make a choice cuts fell $2.33 at $272.01 consistent with cwt.