By Tom Polansek
CHICAGO, Oct 13 (Reuters) – Chicago Mercantile Exchange lean hog futures fell to their lowest prices in about three weeks on Wednesday amid pressure from plentiful supplies, analysts said.
Live cattle and feeder cattle futures also finished lower at CME.
Hog supplies tend to increase in the autumn, pushing more pork on the market and weighing on prices, said Matt Wiegand, a commodity broker for FuturesOnes. The supplies leave meatpackers with little incentive to increase bids to buy pigs for processing, he said.
“We continue to move into a more plentiful seasonal time frame,” he said.
Most-active December lean hogs LHZ1 ended down 0.025 cent at 78.150 cents per pound and hit their lowest price since Sept. 24. The contract has dropped 8.5% since the beginning of the month.
Front-month October hogs LHV1 closed 0.425 cent weaker at 88.650 cents per pound.
The U.S. Department of Agriculture, in a weekly report on Tuesday, lowered its forecast for 2021 U.S. pork exports because of weaker demand from China, the world’s top pork consumer.
Chinese purchases of U.S. beef, however, are booming.
China is the biggest beef market and there is still a lot of demand there, said Lindsay Kuberka, director of global commodity analysis for the USDA’s Foreign Agricultural Service.
“We continue to see very strong demand in China, so of course we’re pretty optimistic about continued growth in that market,” she said at an annual meeting for users of USDA data.
Most-active December live cattle futures LCZ1 settled down 0.250 cent at 129 cents per pound. February live cattle LCG2 fell 0.700 cent to 133.550 cents per pound.
Most-active November feeder cattle contract FCX1 slumped 0.825 cent to 160.975 cents per pound, while the January contract FCF2 dropped 1.325 cents to 161.450 cents.
Choice cuts of boxed beef slid by $1.05 to $280.02 per cwt, while select cuts fell by $2.65 to $258.70 per cwt, according to USDA data.
(Reporting by Tom Polansek; Editing by Shailesh Kuber)