U.S. livestock: Hog futures extend losing streak

Feeder cattle turn higher on bargain buying

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Published: May 8, 2023

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CME June 2023 lean hogs with Bollinger bands (20,2). (Barchart)

Chicago | Reuters — Chicago Mercantile Exchange lean hog futures fell for the fourth straight session on Monday, with the most-active June contract hitting a new low, with traders focused on cash market weakness and light demand for pork.

In CME cattle futures, feeder cattle contracts rebounded from six straight losing sessions on some bargain buying. Feeder cattle had hit their highest in nearly eight years before the losing streak as traders bid up prices due to declining corn costs that made it cheaper to feed animals.

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Corn bids and offers have lately been far apart, with bids generally a dollar or more below the C$12 per bushel Ontario farmers would like to see. Photo: iStock/Getty Images

Feed Grain Weekly: Prices in a slow decline

Seasonal weakness and recent rains across the Prairies pressured feed grain prices according to a Moose Jaw-based trader.

Most actively traded June lean hog futures settled down 0.475 cent at 83.3 cents/lb. after reaching a contract low of 83.025 cents/lb. during the session (all figures US$).

Technical support was noted around the low end of the contract’s 20-day Bollinger range.

August feeder cattle rose 1.675 cents to close at 223.1 cents/lb. The contract rose above its 40-day moving average during the session.

June live cattle finished 0.5 cent higher at 162.425 cents/lb., closing off its session high after facing resistance near its 30-day moving average.

— Mark Weinraub is a Reuters commodities correspondent in Chicago.

About The Author

Mark Weinraub

Mark Weinraub is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Michael Hirtzer in Chicago, Naveen Thukral in Singapore and Sybille de La Hamaide in Paris.

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