Chicago | Reuters — U.S. hog futures fell for the fourth day in a row on Friday, extending a losing streak that pulled prices off a two-week high hit on Monday.
Traders said gains in the futures earlier in the week outpaced cash market strength and the spread between the two markets needed correcting.
Cattle futures also were weaker, but the market remained underpinned by reports of good demand on the cash market, with physical sales averaging about $2-$3 more per hundredweight than a week earlier (all figures US$).
December lean hog futures dropped 0.85 cent, to 67.25 cents/lb., at the Chicago Mercantile Exchange. The contract closed above its session lows after finding technical support at its 30-day moving average.
December live cattle futures closed down 0.05 cent at 110.775 cents/lb.
November feeder cattle futures closed off 0.725 cent at 141.375 cents/lb.
Some technical support was noted after the contract dipped below its 10-day moving average. It has not closed below that level since Nov. 10.
JBS USA will remove a growth drug banned by Beijing from its U.S. hog supply, the company said on Friday, accelerating the competition for pork exports as China’s hog sector grapples with African swine fever.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.