By Christopher Walljasper
CHICAGO, Oct 21 (Reuters) – Chicago Mercantile Exchange lean hog futures fell for a third session on Thursday, pressured by weak export activity, traders said.
CME December lean hog futures LHZ1 settled down 2.825 cents at 73.200 cents per pound, its biggest drop since Sept. 10. CME February hogs LHG2 ended down 2.55 cents at 76.675 cents per pound.
Nearby hog futures lag the CME’s Lean Hog Index, a two-day weighted average of lean hog values, which fell to $85.89, its lowest since March 5. .IHX
“I think the board is way too bearish right now. We are way under the index,” said Dennis Smith, commodity broker at Archer Financial.
U.S. exporters sold 20,900 tonnes of pork during the week ended Oct. 7, down 36% from the previous four-week average, a marketing year low, the USDA said.
In the cattle markets, CME live cattle futures fell on weaker exports, though optimism remains for the market.
“The beef is bottoming out, the feedlots are getting more current, the cash market’s taking on a firmer tone. It was a hiccup today, in my opinion,” said Smith.
CME December live cattle futures LCZ1 settled down 0.975 cent at 129.550 cents per pound. January feeder cattle futures FCF2 eased 0.475 cent to end at 160.000 cents per pound.
U.S. exporters sold 7,800 tonnes of beef during the week ended Oct. 7, down 51% from the previous four-week average, a marketing year low, the USDA said.
Boxed beef prices were mixed, with choice cuts adding 63 cents to $280.66 per hundredweight, while select cuts fell 8 cents to $262.72.
Traders await monthly U.S. cattle-on-feed and cold storage reports due from the USDA on Friday.
Analysts surveyed by Reuters on average expect the government to report the number of U.S. cattle on feed as of Oct. 1 at 99.4% of the year-ago figure. Cattle placements in September were seen at 101.4% of year-ago, while September cattle marketings were seen at 97.5% of year-ago.
(Reporting by Christopher Walljasper; Editing by Devika Syamnath)
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