U.S. livestock: Lean hogs tick down on supply numbers, year-end positioning

Chicago | Reuters – Chicago Mercantile Change dwell cattle and lean hog futures fell whereas feeder cattle futures rose on year-end positioning, in accordance with analysts, with the commerce skinny between Christmas and New 12 months holidays.

Many funds nonetheless have web lengthy positions, stated Doug Houghton, analyst at Brock Associates, “In the event that they’re taking earnings, that’s going to weigh on issues,” he stated.

In lean hogs, the U.S. Division of Agriculture’s quarterly hogs and pigs report final week confirmed bigger numbers than anticipated, additionally weighing on futures, stated Houghton.

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The USDA on Monday afternoon reported pork bellies fell $4.50 to $124.08 per hundredweight.

The CME benchmark February lean hog futures LHG26 fell 0.050 cent to 84.475 cents per pound.

The CME February dwell cattle LCG26 settled 0.675 cents decrease at 228.975 cents per pound. March feeder cattle FCH26 settled 1.250 cents increased at 341.675 cents per pound.

In cattle, Houghton famous, “there’s nonetheless plenty of trepidation available in the market about when the USDA may re-open cattle imports from Mexico, however it’s laborious to say from day after day that that’s actually an element.”

The U.S. has been closed to these imports due to the unfold of the New World screwworm parasite in Mexico, and re-opening the border would improve provides of the animal, weighing on futures.

In boxed beef, alternative cuts fell $1.88 to $349.33 per cwt, in accordance with USDA knowledge as of Monday afternoon. Choose cuts rose $1.82 to $345.62 per cwt.

Beef packers misplaced $235.00 per head of cattle on Monday, in accordance with livestock advertising advisory agency HedgersEdge.com, in comparison with $204.95 on Friday and $161.90 per week in the past.

“Packer margins are sharply adverse and it’s definitely a adverse market issue,” stated Houghton.