July 9, 2018 / 9:20 PM / 5 months ago

LIVESTOCK-Hog futures extend declines on demand worries

    By Michael Hirtzer
    CHICAGO, July 9 (Reuters) - U.S. lean hog futures        
fell over 3 percent on Monday, weighed down by plentiful
supplies and worries of weaker demand later this year due to
tariffs on imports of American pork in Mexico and Canada,
traders and analysts said.
    Most-active Chicago Mercantile Exchange August hogs       
sank 2.650 cents to 72.775 cents per pound, the lowest since
reaching a life-of-contract low on April 4. The October       ,
December        and February contracts        each notched
lifetime lows.
    China last week imposed tariffs on U.S. pork and billions of
dollars worth of other goods. The move followed tariffs
installed by Mexico, the top buyer of U.S. pork, on some cuts of
the meat earlier this year.
    Hog futures have largely drifted lower since a government
report at the end of June that showed an expanded U.S. herd.
    "Hogs just by themselves are supply bearish. Then you take
the external factors that are the tariffs, and that's not a
positive," said U.S. Commodities President Don Roose.
    Hog futures have declined even as cash prices have increased
last week. Cash hog prices often gain in the summer months, when
hot weather slows weight gain in the animals, reducing supply,
at the same time some U.S. consumers cook more meat outdoors on
grills.
    Hogs in the top cash market of Iowa and southern Minnesota
on Monday were down 50 cents to $76.85 per cwt, according to the
U.S. Department of Agriculture.
    Cattle futures also eased, with prices for both live        
and feeder cattle         extending declines on technical
selling and worries of abundant U.S. cattle supplies.
    CME August live cattle        fell 0.250 cent to 106.125
cents per pound, declining for the fifth straight session and
finding downside support at its 100-day moving average.
    CME August feeder cattle        finished 0.750 cent lower at
151.450 cents per pound, the third straight daily decline.
    Feeder steers and heifers were up $1 to $4 per cwt higher at
a closely watched cattle auction in Oklahoma City, where demand
was "good to very good," according to USDA.              

 (Reporting by Michael Hirtzer
Editing by James Dalgleish)
  
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