Chicago | Reuters — CME Group 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.
The U.S. Agriculture Department (USDA) on Thursday morning said that weekly export sales of beef totaled 13,800 tonnes, down from 18,000 a week ago.
Pork export sales in the week ended Dec. 8 rose to 22,100 tonnes, up from net cancellations of 5,500 tonnes the previous week.
CME February lean hogs dropped 1.75 cents, to 81.65 cents/lb.
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CME benchmark February live cattle fell 0.85 cent, to 154.85 cents/lb., while the spot December contract dipped 0.45 cent, to 154.05 cents/lb. December live cattle futures expire on Dec. 30.
CME January feeder cattle lost 0.55 cent, to 183.05 cents/lb.
A winter storm in the U.S. Plains threatened some herds.
In western Nebraska, rancher Melody Benjamin moved her 650-lb. 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/cwt, USDA said.
— Reporting for Reuters by Mark Weinraub and Tom Polansek.
