CME lean hog futures fall on profit-taking
By Tom Polansek
CHICAGO, April 23 (Reuters) - U.S. hog futures sagged on
profit-taking on Tuesday after a recent run-up to contract
highs, traders said.
Live cattle futures also slumped at the Chicago Mercantile
The most actively traded June hogs contract has
pulled back about 7.5 percent after setting a contract high on
April 5 on expectations that China will further increase its
pork imports because of an outbreak of a fatal hog disease
called African swine fever.
Traders still project that China, home to the world's
largest hog herd, will need to import more pork from the United
States and other suppliers, such as the EU.
However, a decline in cash prices on Monday and a lack of
fresh news opened the door for some profit taking, said Matthew
Wiegand, broker at FuturesOne.
"With the soft cash action, and nothing new to spark that
next round of buying, we're just kind of seeing a pullback," he
The benchmark June lean hogs contract ended down
1.400 cents at 92.375 cents per pound. October hogs fell
0.225 cents to 92.700 cents per pound.
Traders are waiting for the U.S. Department of Agriculture
to report weekly pork export sales on Thursday to see whether
China has continued buying.
"We put another good number there and we'll pop back pretty
quick," Wiegand said.
Last week, the USDA reported China bought 23,473 tonnes of
U.S. pork in the week ended April 11. That was China's third
biggest purchase since the USDA began tracking sales in 2013.
In the cattle market, most-active June live cattle futures
have dropped about 3 percent from a contract high set on March
22. Prices came under pressure from long liquidation and
weakness in the hog market, traders said.
Warmer, drier weather in the U.S. Plains is also allowing
cattle to gain weight more easily. The cold and snowy winter
previously slowed weight gain in cattle, which consume feed to
generate body heat.
CME June live cattle futures fell 0.450 cents to
settle at 121.125 cents per pound. August live cattle futures
closed down 0.575 cent at 118.200 cents per pound.
August feeders edged up 0.075 cents to 159.700 cents.
In other news, four of the largest U.S. beef-packing
companies were accused in a lawsuit on Tuesday of violating
federal antitrust law by conspiring to drive down prices they
paid ranchers for cattle.
(Reporting by Tom Polansek in Chicago
Editing by Marguerita Choy)
First Published: 2019-04-23 00:38:59
Updated 2019-04-23 22:39:30
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