October hog futures settle up - CME

Sep 23, 2024

Chicago Mercantile Exchange (CME) live and feeder cattle futures slipped on Monday as boxed beef prices retreated and consumer demand fell, Reuters reported, citing traders.

Wholesale boxed beef prices have slid as industry players closely monitor consumer spending habits amid evidence that inflation-hit Americans are reducing their spending on pricier cuts of beef such as steak, which could be weighing on cattle futures.

Choice boxed beef prices slid by 35 cents to $304.57 per hundredweight and select cuts of beef fell by $2.03 to $292.14 per hundredweight, according to US Department of Agriculture (USDA) data published on Monday afternoon.

CME October live cattle futures ended down 0.425 cent at 177.225 cents per pound.

October feeder cattle ended down 0.125 cent at 239 cents per pound.

"My theory is that the US consumer has been so beat up by inflation, especially the middle to lower income consumer, that they're actively trading down, and that's a major problem for the cattle market," Dennis Smith, broker at Archer Financial Services, said.

Consumers often pass over beef for items like sausage, which is typically made from pork, when times are tight, Smith said.

Next Friday, traders will review US Department of Agriculture data showing the number of cattle in feedlots at the start of the month. As of Aug. 1, there were 11.1 million cattle on feed, up 0.3% from a year ago, the USDA said.

Expectations for a seasonal increase in the US pig slaughter pace and heavier hogs hitting the market have weighed on hog futures.

October hog futures settled up 1.475 cents at 79.925 cents per pound.

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Video: A Farm Song (Busy) | Parody of A Bar Song (Tipsy) by Shaboozey

Lyrics:

My days begin with workin’, Alarm’s at 5 o’clock,
I Fill 5 gallon buckets, The feeders and the troughs,
This five to nine ain’t workin’, why the heck do I work so hard?,
I can’t worry ‘bout health problems, I can sleep in when I’m gone,

One, here comes the two to the three to the four,
Tell em’ ‘buy another cow, we need plenty more’,
Blue jeans are gettin’ dirty, what else could I ask for,
Oh my, more chores

Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history,
There’s another flock of sheep that still needs feed,
Everybody on the farm gettin’ busy,

Everybody on the farm gettin’ busy,
Everybody on the farm gettin’ busy,

I’ve been working pretty stressed but,
I ain’t changing for some cash,
Lord knows that I’m very blessed (More chores),
But I gotta say it’s hard,
Workin’ outside gettin’ charred,
Living out here on the farm, (more chores)

One, here comes the two to the three to the four,
Tell em’ ‘buy another cow, we need plenty more’,
Blue jeans are gettin’ dirty, what else could I ask for,
Oh my, more chores

Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history
There’s another 20 chickens that still need feed,
Everybody on the farm gettin’ busy,

Everybody on the farm getting’ busy,
Everybody on the farm gettin’ busy,

Fun, here on ranch that’s what you can’t ignore,
Might be pretty hard but I love it to its core,
Flannel’s gettin’ dirty, what else could I ask for,
Oh my, more chores (Tell ‘em sing with me)

Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history,
There’s another flock of sheep that still needs feed,
Everybody on the farm gettin’ busy,
Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history,
Watching cattle in the dark, don’t miss me,
Everybody on the farm gettin’ busy,
(Yeeeeeehaw)
Everybody on the farm gettin’ busy,
Everybody on the farm gettin’ busy,
It’s the best bro, go get yourself a farm