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Chicago Mercantile Exchange Hogs and Cattle Market Overview

Strategic Insights

— 1 min read

The Chicago Mercantile Exchange (CME) hogs and cattle market saw significant fluctuations on Monday, with lean hogs closing sharply lower due to profit-taking, bearish cash hog quotes, and sell stops. However, most live cattle contracts landed on positive turf, driven by bullish factors such as the U.S. stock market's run-up and sharply higher CBOT corn prices. The market was also influenced by spot-August profit-taking, lean hog liquidation, and sell stops in pork bellies.

Key Takeaways:

  • Lean hogs closed sharply lower due to profit-taking, bearish cash hog quotes, and sell stops, with August contracts finishing 107 points lower at 54.95 cents a pound, and October contracts finishing 185 points lower at 52.05 cents.
  • Live cattle contracts, on the other hand, landed on positive turf, driven by bullish factors such as the U.S. stock market's run-up and sharply higher CBOT corn prices.
  • Pork bellies closed lower on spot-August profit-taking, lean hog liquidation, and sell stops, with August contracts finishing 50 points lower at 61.75 cents, and February contracts finishing down 25 points at 81.00 cents.
  • Feeder cattle ended lower on profit-taking, front-month premiums to CME's feeder cattle index, and sell stops, with August contracts finishing down 35 points at 102.00 cents, and September contracts finishing 57 points lower at 101.97 cents.
  • The U.S. Department of Agriculture's Monday afternoon boxed beef data showed choice cuts fell $1.19 per hundredweight, and select items were down $0.30.
  • Market participants await this week's cash cattle price bids and asking prices, while bullish and bearish live cattle participants will track outside markets and CBOT corn's subsequent movement.

Statistics:

  • Lean hogs finished 107 points lower at 54.95 cents a pound in August contracts.
  • October live cattle contracts finished 185 points lower at 52.05 cents.
  • August pork bellies contracts finished 50 points lower at 61.75 cents.
  • Feeder cattle contracts finished down 35 points at 102.00 cents in August.
  • August live cattle contracts finished down 25 points at 84.45 cents a pound.
  • October live cattle contracts finished up 12 points at 90.32 cents.
  • CBOT corn's upswing pressured feeder cattle contracts.
  • Spreaders sold feeder cattle and bought live cattle.

Sources:

  • Dow Jones Commodities News via Comtex
  • Theopolis Waters, Dow Jones Newswires; 312-341-5778; theopolis.waters@dowjones.com
  • Comtex SmarTrend Alert
  • Comtex News Network, Inc.

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