Hog futures hit 6-1/2-month low on slowing demand
Chicago Mercantile Exchange hog futures fell to a 6-1/2-month low on Wednesday with demand for pork fading as the traditional U.S. grilling season nears its close.
Cattle futures were mixed, with live cattle contracts sagging on weakness in the cash markets while feeder cattle contracts closed higher.
Hog futures have fallen in four of the previous five sessions, with the benchmark October contract (LHV2) shedding 7.8% during the period.
"And just like that our summer seasonal strength looks to be a thing of the past and the lower move into fall has commenced," brokerage StoneX said in a note to clients.
CME October lean hogs (LHV2) fell 2.525 cents to 90.375 cents per pound. The contract dropped below the lower end of its 20-day Bollinger range and its 100-day moving average.
On a continuous basis, the front-month hogs contract
touched its lowest since Feb. 11.
CME October live cattle futures (LCV2) dropped 0.825 cent to settle at 143.775 cents per lb, falling below its 20-day moving average for the first time since July 18. CME September feeder cattle futures (FCU2) rose 0.575 cent to 183.025 cents per lb.
In the U.S. wholesale beef market, choice cuts rose 3 cents to $262.83 per hundredweight (cwt), according to the U.S. Department of Agriculture. Select cuts fell $1.18 to $237.62 per cwt.
The United States Department of Agriculture's pork carcass value dropped $2.09 to $102.99 per cwt on Wednesday.