LIVESTOCK – Cattle and pigs generally end down as broad commodity markets collapse


CHICAGO, March 18 (Reuters) – The Chicago Mercantile Exchange cattle and hog futures contracted large losses in most contracts on Thursday, as a widespread sell-off in the commodities market, led by the falling crude oil and a stronger US dollar weighed on prices.

Fundamentals for cattle and hogs remained strong amid strong beef and pork exports and good domestic demand for meat, as restaurants ease restrictions related to the coronavirus pandemic and retailers move forward. cater for the outdoor grilling season.

Concerns about inflation, however, have fueled some concerns about limited spending on more expensive steaks and chops.

After gains at the start of the session, pressure from outside the market triggered profit-taking on breeding contracts which recently reached new highs.

“When we started to see a pullback in foreign markets and the US dollar rallied, those markets started to collapse. We were a bit heavy on the finish line, ”said Karl Setzer, commodity risk analyst at AgriVisor.

Chicago Mercantile Exchange live cattle futures in April fell 0.850 cents to 118.575 cents a pound. Actively traded live cattle in June hit a contract high of 122.700 cents early in the day, but ended the session down 2.375 cents to 119.650 cents. The months of August 2021 to February 2022 also posted highs over the duration of the contract, but closed lower.

April feeder cattle ended down 3.225 cents to 141.425 cents per pound, while May through October posted contract highs but ended the day lower.

April lean hog futures, the only CME cattle contract that ended the day higher, gained 0.625 cents to 94.300 cents per pound, the highest level for a first-month contract since October 2014. The most active June futures contracts fell 2300 cents to 100.025 cents.

The United States Department of Agriculture (USDA) reported net beef export sales at 25,936 tonnes in the week ended March 11, the most in six weeks. Net pork sales during the week totaled 39,717 tonnes, continuing a series of strong sales mainly driven by accelerating Chinese purchases. (Reporting by Karl Plume; Editing by Will Dunham)

Source link


Comments are closed.