Dwell cattle and feeder cattle futures weaken
21 February 2025
2 minute learn
Chicago Mercantile Alternate (CME) lean hog futures slid on Thursday, as a pointy setback in pork stomach costs set a adverse tone for the market, Reuters reported, citing brokers.
Alternate-owner CME Group stated it made an error on the ultimate settlement value for February hog futures that it posted on Wednesday.
Futures declined for a second consecutive session below strain from weaker pork cutout costs and profit-taking, brokers stated.
Dwell cattle and feeder cattle futures additionally weakened, as a sell-off on Wall Road fueled considerations about client demand for meat, they stated.
“The pullback in outdoors markets and actually the tender costs for boxed beef and contemporary pork have opened up the concept it is time to take a bit bit extra income,” stated Matthew Wiegand, commodity dealer at FuturesOne in Nebraska.
April lean hog futures completed down 1.225 cents at 88.525 cents per pound, after hitting their lowest value since February 4 earlier within the session.
CME Group stated it revised the ultimate settlement value for February hogs to 89.49 cents per pound from 90.19 cents.
The US Division of Agriculture (USDA) quoted wholesale pork carcass cutout at $94.03 per hundredweight late on Thursday, down by $1.49 from Wednesday. The decline adopted a drop of $3.95 the day prior to this.
Stomach values tumbled by $7.46, after sinking by $16.75 per hundredweight on Wednesday.
For boxed beef, costs for alternative cuts fell by $1.26 whereas choose cuts sagged by $0.58, the USDA stated.
Declines in equities typically weigh on cattle futures attributable to worries that demand for high-priced beef suffers when the financial system weakens.
“The skin market nervousness is choosing up the promoting,” Wiegand stated. “Hopefully as we get into spring, we’ll begin seeing demand choose up.”
March feeder cattle futures fell 2.2 cents to finish at 266.825 cents per pound, after touching a one-week low earlier within the day.
April dwell cattle futures closed down 0.975 cent at 193.8 cents per pound. The market remained close to a 2025 low reached on Tuesday.
