Hog, cattle futures fall on poor demand outlook - CME
Traders concerned about domestic and export demand
16 December 2022
2 minute read
By: Chicago Mercantile Exchange (CME) cattle and hog futures weakened on Thursday, with traders expressing concerns about both domestic and export demand due to prospects for a softening global economy, reported Reuters.
The US Department of Agriculture (USDA) on Thursday morning said that weekly export sales of beef totalled 13,800 tonnes, down from 18,000 a week ago.
Pork export sales in the week ended Dec. 8 rose to 22,100 tonnes from -5,500 tonnes.
CME February lean hogs dropped 1.75 cents to 81.65 cents per pound.
CME benchmark February live cattle fell 0.85 cent to 154.85 cents per pound, while the spot December contract dipped 0.45 cent to 154.05 cents per pound. December live cattle futures expire on Dec. 30.
CME January feeder cattle lost 0.55 cent to 183.05 cents per pound.
A winter storm in the US Plains threatened some herds.
In western Nebraska, rancher Melody Benjamin moved her 650-pound weaned calves into corrals to protect them from strong winds and snow. The animals could have been hurt or lost if they drifted into an icy lake or piled up against a fence in the winter storm, she said. Other producers, meanwhile, put out extra feed to keep cattle warm.
"Giving them a little more feed helps build that body temperature up," said Benjamin, vice president of policy engagement for the industry group Nebraska Cattlemen. "Everybody really cares about their livestock and they do their best."
Boxed beef prices were strong on Thursday, with choice cuts gaining $4.23 to $254.30 per hundredweight (cwt), while select cuts rose $1.82 to $228.51 per cwt, the USDA said.
