Chicago | Reuters — Chicago Mercantile Exchange lean hog futures rebounded on Friday after dropping a day earlier to their lowest prices since January.
The market was due for a bounce following a recent slide that was driven by concerns about weakening U.S. demand and technical selling, analysts said.
The most-active June hogs contract ended up 3.275 cents at 100.75 cents/lb. (all figures US$). As of the close of trading on Thursday, the contract had dropped about 23 per cent since reaching a high of 127.325 cents/lb. on March 31.
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July lean hogs closed 3.35 cents higher at 101.2 cents/lb.
Livestock futures came under pressure recently as analysts raised concerns that meat demand could suffer if inflation remains elevated for longer than anticipated. Some analysts said the price declines looked overdone for now.
CME August feeder cattle settled 1.5 cents firmer at 168.025 cents/lb., a day after reaching their lowest price since Sept. 13. Weakening futures prices for corn, used for livestock feed, helped support feeder cattle, traders said.
Nearby June live cattle rose 0.425 cent to close at 132.075 cents/lb., but deferred contracts ended softer.
Profit margins for beef processors improved on Friday to $87.74 per head of cattle from $66.75 per head on Thursday and $69.65 per head a week ago, according to livestock marketing advisory service HedgersEdge.com.
Pork processors were losing $33.20 per hog, compared with losses of $35.80 per head on Thursday and losses of $11.25 per head a week earlier, HedgersEdge.com said.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
