LIVESTOCK-CME Lean Hogs extend decline to three-month lows
Written by Tom Polansek
Chicago, January 6 (Reuters). – CME Group lean hog futures fell to a three-month low and closed lower for a seventh straight session on Friday on concerns about weak demand, brokers said.
The increase in hog weights also weighed on the market after last winter’s blizzard delayed processing and supported livestock on farms, brokers said.
Pig processors beat up There were about 453,000 hogs on Friday, up from 451,000 a year ago, according to the U.S. Department of Agriculture. The average weight of hogs in Iowa, Minnesota and South Dakota reached 289.9 pounds as of Dec. 31, up 6.7 pounds from last week, according to the agency’s latest data.
“Slaughter is steady but gaining weight,” said Carl Setzer, head of brokerage research at Mid-Co Commodities.
CME February skinny pigs LHG3 It fell 2.250 cents to 80.275 cents a pound, its lowest since Oct. 7 at 80.125.
U.S. pork inventories are adequate, and demand may decline as consumers continue to struggle with inflation, Setzer said. In December, hourly wage – labor prices – rose at the slowest annual rate in 16 months.
Worries about global commodity demand and economic fluctuations, including a rise in COVID-19 cases in China, continued to weigh on the future of the livestock industry, analysts said.
“There is no urgency in this market right now,” Setzer said.
Livestock futures also settled lower with the February benchmark contract LCG3 It fell 0.575 cents to 156.775 cents per pound. March contract on cattle feed futures FCH3 fell 0.900 cents to 185.650 cents per pound.
Wholesale prices for choice cuts of canned beef rose $1.36 to $282.99 per cwt, while select cuts rose $2.39 to $259.34 a cwt, the report said. USDA.
The USDA also forecast weekly net exports of US beef to 12,500 tonnes in 2023, declining to 6,900 tonnes in 2022. US pork weekly net exports were 73,600 tons in 2023, with net sales down 51,920 tons. .
(Reporting by Tom Polansek in Chicago)
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