Chicago Mercantile Exchange (CME) lean hog futures fell to their lowest price in nearly four weeks on Tuesday as large supplies hung over the market, reported Reuters.
Technical selling added pressure on prices as December hogs dropped below 70 cents per pound for the first time since Nov. 1, analysts said. The contract ended down 2.175 cents at 68.175 cents per pound and hit its lowest price since Oct. 26.
February lean hog futures dropped 2.725 cents to close at 72.325 cents per pound.
"We're challenging the market with very large production," a commodity broker said.
US meatpackers slaughtered an estimated 486,000 hogs, up from 473,000 hogs a week ago, the US Department of Agriculture (USDA) said.
The USDA quoted the wholesale pork carcass cutout at $85.21 per cwt, down $0.88, as values weakened for hams, ribs and loins.
Boxed beef prices also eased to $268.77 per cwt for select cuts, a decline of $2.18 from Monday, the USDA said. Choice cuts were priced at $295.81 per cwt, up $0.06.
Traders said they expected cattle slaughtering to be strong next week as meat companies prepare to meet beef demand around the Christmas and New Year's holidays. Meatpackers slaughtered an estimated 126,000 cattle on Tuesday, which was unchanged from a week ago.
CME February 2024 live cattle futures slipped 0.575 cent to end at 176.075 cents per pound. January 2024 feeder cattle fell 1.525 cents to 228.325 cents per pound and stayed within Monday's trading range.
Livestock markets consolidated ahead of the Thanksgiving holiday on Thursday, traders said.
Source : The Pigsite