Hogs, cattle drop as U.S. rains seen denting cookout demand
By Karl Plume
CHICAGO, May 21 (Reuters) - U.S. live cattle and lean hog
futures on the Chicago Mercantile Exchange (CME) closed mostly
lower on Tuesday as both markets were pressured by worries that
wet weather around large parts of the country would disrupt
demand for pork and beef.
Above-normal rains are expected across much of the western
and central U.S. farm belt over the next 10 days, a span that
includes the Memorial Day weekend, a popular outdoor grilling
"Continued wet weather heading into the first big
grilling-season holiday of the year is entrenching bearish
attitudes that supplies are not going to move well because
demand will be thwarted by the weather," said Mike Zuzolo,
president of Global Commodity Analytics.
CME June live cattle fell 0.500 cent to 110.850 cents
per pound, while actively traded August was down 0.250
cent at 108.275 cents.
June lean hog futures closed 1.650 cents lower at
90.100 cents per pound while actively traded July hogs
ended down 1.625 cents at 91.375 cents.
Trade uncertainty heaped further pressure on hog futures
after negotiations to end the bruising U.S.-China trade war
soured dramatically since early May.
China, which had been expected to ramp up imports of U.S.
pork this year, has not booked any substantial U.S. purchases
since early April, according to U.S. Department of Agriculture
Feeder cattle futures followed other livestock markets
lower, with additional pressure stemming from the rising cost of
Benchmark Chicago Board of Trade corn futures rose to
a one-year peak in a seventh straight session of gains on
CME August feeder cattle ended down 1.775 cents at
143.000 cents per pound and September feeders fell 1.700
to 144.175 cents.
(Reporting by Karl Plume in Chicago
Editing by Leslie Adler)
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