Content ID

334583

LIVESTOCK-Hog futures firm on shrinking basis; corn pressures cattle futures

CHICAGO, Oct 10 (Reuters) - Chicago Mercantile Exchange nearby lean hog futures ended up on Monday, as technical trading pushed the basis back up and the spread between futures and cash prices narrowed, traders said.

Meanwhile, live and feeder cattle futures slumped on the day, pressured by a rally in corn futures.

Chicago Board of Trade corn futures firmed sharply on Monday, following a rally in wheat futures, which surged amid growing concerns that an escalation in the fighting between Russia and Ukraine could further disrupt grain shipments from Black Sea ports.

But analysts and traders alike cautioned that the cattle market may be underestimating consumer demand going into the fourth quarter.

"There are signs that the cattle market may be getting ahead of itself and not worrying about demand enough," said Don Roose, president of Iowa-based U.S. Commodities.

The most-active CME December lean hog futures contract settled up 2.45 cents at 79.60 cents per lb. Front-month October hogs rose 0.800 cent to settle at 93.75 cents per lb.

CME October live cattle closed the day down 0.625 cent at 144.700 cents per lb and the most-active December contract settled down 1.050 cents to end at 147 cents.

CME November feeder cattle dropped 2.75 cents to finish at 172.875 cents per lb.

Meatpackers slaughtered an estimated 128,000 cattle on Monday, 1,000 more than a week ago and up from 118,000 cattle a year ago, the USDA said.

In the pork sector, packers killed an estimated 488,000 hogs. That compares with 465,000 hogs a week ago and 474,000 hogs a year ago. (Reporting by P.J. Huffstutter; Editing by Shounak Dasgupta)

© Copyright Thomson Reuters 2022. Click For Restrictions - http://about.reuters.com/fulllegal.asp

Read more about
Loading...

Tip of the Day

1-inch impact dolly cart

Socket caddy By welding lengths of angle iron with evenly spaced upright rods onto an old two-wheel dolly, I made a cart that holds my impact wrench... read more

Talk in Marketing

Most Recent Poll

Will you have enough on-farm storage for harvest?

I just want to see the responses
46% (26 votes)
Yes
39% (22 votes)
No, it’s going to be a bin-buster
7% (4 votes)
Maybe, depending on yields
5% (3 votes)
No, I am looking at new bins or temporary storage
4% (2 votes)
Total votes: 57
Thank you for voting.