Chicago | Reuters — CME Group hog futures fell to their lowest in more than seven weeks on Tuesday, pressured by follow-through selling after dropping in four of the previous five sessions with supplies in focus as kill rates were expected to rise.
Concerns about lower pork consumption in China due to COVID-19-related lockdowns in major cities there also contributed to the bearish tone.
Benchmark June lean hogs settled down 2.85 cents at 111.175 cents/lb. (all figures US$). The contract bottomed out at 110.6 cents, its lowest since March 7.
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Technical support for June hogs was noted at the low end of its 20-day Bollinger range.
CME June live cattle futures gained 0.825 cent to settle at 136.25 cents/lb., rising above their 40-day moving average.
Traders noted some bargain buying in live cattle.
But CME feeder cattle were weaker, with May down 0.575 cent at 160.725 cents/lb. and most-active August feeders down 1.35 cents at 173.15 cents/lb.
The U.S. Department of Agriculture on Friday allowed a Clemens Food Group pork plant in Coldwater, Michigan, to increase line speeds as part of a trial program, according to the agency’s website. In March, three other plants were allowed to accelerate speeds.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.
