By Mark Weinraub
CHICAGO, April 16 (Reuters) – CME Group hog futures fell sharply for the second day in a row on Friday, with the most-active June contract LHM1 sinking 2.9% to its lowest since March 23.
Cattle futures additionally had been weaker, with the June stay cattle contract LCM1 notching its seventh straight dropping session.
The market was correcting from a pointy rally fueled by expectations of demand from eating places selecting up as COVID-19 restrictions had been eased in america. However the reopening has slowed in lots of areas because of rising numbers of infections.
Moreover, forecasts for chilly climate throughout a lot of the U.S. Midwest will delay grilling season.
“We received a bit of bit forward of ourselves,” mentioned Don Roose, president of U.S. Commodities in West Des Moines, Iowa. “For a grilling season you want heat climate and it’s a little bit cool; that slows down stuff a bit.”
The benchmark June hog futures contract LHM1 dropped three cents to decide on Friday at 101.700 cents per lb on the Chicago Mercantile Change (CME). Costs bottomed out at 100.925 cents.
The CME briefly expanded each day buying and selling limits to 4.5 cents on Friday for the hog market after a restrict down transfer of three cents on Thursday.
CME June stay cattle LCM1 ended 0.475 cent decrease at 119.175 cents per pound. August feeder cattle futures FCQ1 had been down 1.45 cents at 154.15 cents per pound.
General, U.S. meat processors slaughtered 113,000 cattle on Thursday, up from 111,000 cattle every week earlier, and 468,000 hogs, unchanged from every week in the past, in response to USDA.
(Reporting by Mark Weinraub; modifying by Jonathan Oatis)
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