LIVESTOCK-Hog futures fall for third day in a row
By Mark Weinraub
CHICAGO, Oct 22 (Reuters) - Chicago Mercantile exchange lean hog futures fell for the third day in a row on Thursday, with traders saying they expected the recent surge of Chinese demand for pork to fade as the world's top consumer rebuilds its decimated hog herd.
"I increasingly see more attention paid to deteriorating long-term export forecasts around expanding Chinese domestic pork production," brokerage StoneX said in a note to clients.
Cattle futures also were weaker, but the front-month live cattle contract found technical support above the seven-week low it hit on Tuesday.
The U.S. Agriculture Department on Thursday morning said that weekly export sales of pork totaled 27,600 tonnes. That compares with 28,400 tonnes in the prior week. Export sales to China fell to 1,800 tonnes from 5,200 tonnes.
CME December lean hogs fell 3 cents to 66.2 cents per pound, hitting its lowest since Oct. 13.
CME December live cattle futures dropped 1.1 cents to 103.475 cents per pound.
January feeder cattle fell 0.875 cent to 126.2 cents per pound.
After the close, the USDA said that U.S. frozen beef stocks stood at 461.987 million lbs on Sept 30 and frozen pork belly stocks stood at 24.876 million lbs, down 20 percent from last month and 39 percent from last year.
A USDA report on Friday was expected show that the number of cattle on feed in the United States as of Oct. 1 was 11.649 million head, 103.2% of a year earlier. September placements were expected to be 102.5% of a year ago and marketings 105.8% of a year ago. (Reporting by Mark Weinraub; editing by Jonathan Oatis)
© Copyright Thomson Reuters 2020. Click For Restrictions - http://about.reuters.com/fulllegal.asp