On November 4, Chicago Mercantile Exchange (CME) lean hog futures experienced a decline due to profit-taking and technical selling, according to brokers. This pullback followed a recent surge to contract highs driven by strong U.S. pork demand and unexpectedly tight hog supplies. Matt Wiegand of FuturesOne noted that the hog market was significantly overbought. The CME December lean hog futures decreased by 0.85 cents, closing at 83.225 cents per pound. Meanwhile, wholesale cutout values for U.S. pork bellies and hams saw a decline, though pork carcass values remained stable, with a slight increase in loin prices reported by the U.S. Department of Agriculture.
Concurrently, profit-taking also affected the live cattle futures at the CME. CME’s December live cattle futures dropped by 0.85 cents to settle at 185.075 cents per pound, following a high on Tuesday, which marked its peak price since March. Similarly, November feeder cattle futures fell by 0.525 cents, closing at 246.350 cents per pound. The USDA announced an increase in boxed beef prices, with choice cutouts rising by $0.57 to $316.91 per hundredweight and select boxed beef prices surging by $2.13 to $287.16 per cwt. However, beef processors’ profit margins significantly decreased from $58.40 per head a week ago to just $1.70.
In Canada, a labor dispute escalated as the BC Maritime Employers Association announced a worker lockout at Vancouver Port following failed negotiations. This disruption threatens to impact the country’s meat exports. According to the U.S. Meat Export Federation, a prolonged work stoppage could offer the U.S. an opportunity to augment chilled pork sales to Japan. Additionally, the disruption may lead to increased trucking of Canadian meat into the U.S. market.
The recent market volatility reflects significant shifts in supply, demand, and international trade dynamics, impacting both pork and beef sectors.
Original Story https://www.livemint.com/news/cme-hog-futures-retreat-from-contract-highs-last-week-11730762297734.html
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