August 7, 2018 / 9:58 PM / 13 days ago

LIVESTOCK-Feeder cattle fall on technical selling; hogs mostly lower

    By Michael Hirtzer
    CHICAGO, Aug 7 (Reuters) - U.S. cattle futures fell on
Tuesday, with feeder cattle         easing about 2 percent on
pressure from technical selling and abundant supplies, traders
and analysts said.
    Lean hog futures         also were mostly lower on the
Chicago Mercantile Exchange, weighed down by declining prices
for hogs in cash markets and lower wholesale pork values.
    CME September feeder cattle        notched the largest
declines, settling 3.125 cents lower at 148.725 cents per pound.
Prices dropped for the second straight session, with some
traders exiting long positions following steep gains last week.
    Declining profit margins for fattening cattle, coupled with
U.S. Department of Agriculture data showing increased imports of
Mexican feeder cattle into the southern United States, also
weighed, according to Linn Group analyst John Ginzel.
    "The feedyards are not making the money that they were,
dampening the desire to fill feed pens (with cattle)," Ginzel
said.
    USDA data released on Friday showed that 693,068 feeder
cattle from Mexico were imported to the United States so far
this year, up from 691,614 cattle during the same period in
2017.
    Feeder cattle fetched mostly higher prices at a weekly cash
auction in Oklahoma City, USDA said Tuesday.             
    CME October live cattle futures        shed 0.625 cent to
110.925 cents per pound, tracking the bigger losses in feeder
cattle as investors awaited trades in cash cattle markets.
    CME October lean hogs        declined 0.250 cent to 49.975
cents per pound, with prices turning lower after earlier gains.
    Pork packers have scaled back slaughter rates in recent
weeks in efforts to boost profit margins that had been declining
due to weaker meat prices.
    "This pork market is collapsing ... and you've seen the
packers trying to pick up the margins," Ginzel said.
    Hogs in the top Iowa and southern Minnesota cash market
dropped $2.76 to $50.20 per cwt, USDA said. The agency showed
wholesale pork values easing 76 cents to $72.05 per cwt, brought
down largely by declines in prices for pork bellies used for
bacon, which fell by $9.52 to $99.20 per cwt.                   

 (Reporting by Michael Hirtzer
Editing by Phil Berlowitz)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below