Farm animals markets did to multi-month lows
5 December 2023
2 minute learn
Are living livestock futures at the Chicago Mercantile Change (CME) tumbled on Monday for a 3rd immediately consultation, with the benchmark February contract hitting its lowest since January 2023 on technical-selling worries over red meat call for, Reuters reported, mentioning investors.
Wholesale costs for selection cuts of red meat fell to their lowest since mid-November.
“The marketplace is looking for any sure information, whether or not it is at the call for aspect or the availability aspect, and now not discovering it,” mentioned Altin Kalo, agricultural economist for Steiner Consulting.
“It sort of feels to me that the marketplace is pricing a miles weaker call for surroundings for 2024 than it was once even 3 months in the past,” Kalo mentioned.
CME February reside livestock settled Monday down 2.050 cents at 167.075 cents consistent with pound. Spot December futures ended 2.025 cents decrease at 167.250 cents, widening their cut price to the money marketplace, which traded remaining week at most commonly $175 consistent with hundredweight (cwt), identical to 175 cents consistent with pound.
CME January feeder livestock fell 3.900 cents to settle at 210.525 cents consistent with pound.
Controlled commodity budget nonetheless grasp a modest web lengthy place in CME reside livestock futures of 32,691 contracts, leaving the marketplace prone to further lengthy liquidation. However the budget have whittled that web lengthy down from 103,763 contracts two months in the past.
The United States Division of Agriculture (USDA) priced selection cuts of red meat on Monday at $294.99 consistent with cwt, down $2.47 from Friday and the bottom since Nov. 17. Choose cuts fell $2.66 at $262.83 consistent with cwt. The federal government reported Monday’s livestock slaughter at 125,000 head, up from 123,000 every week in the past and matching the year-ago kill.
CME lean hog futures ended most commonly upper, with most-active February hogs up 0.700 cent at 70.800 cents consistent with pound. Deferred contracts additionally closed upper, however the spot December hog contract fell 0.550 cent to settle at 68.050 cents consistent with pound.
The USDA priced red meat carcasses on Monday afternoon at $84.43 consistent with cwt, up 88 cents from Friday.