CHICAGO — Chicago Mercantile Exchange lean hog futures fell on Thursday, dragged by technical selling and profit-taking following a recent rally to contract highs.
Tight U.S. hog supplies had fueled the recent gains and remained a supportive factor, but the market was oversold.
“We had a key reversal in April hogs yesterday and that often signals an intermediate or major top. We’ve added a lot of risk premium to the market so we’ve really just taken some of that premium out,” said Don Roose, president of U.S. Commodities in West Des Moines, Iowa.
This advertisement has not loaded yet, but your article continues below.
April lean hogs finished down 1.775 cents at 94.675 cents per pound. The benchmark contract notched contract highs in each of the past five sessions but closed lower on Wednesday, signaling the technical reversal.
CME live cattle futures ended lower as higher rates of slaughter were expected to bolster beef supplies and pressure meat prices.
The choice boxed beef cutout fell 35 cents on Thursday to $289.11 per cwt, while the select cutout shed 62 cents to $279.10 per cwt, according to the U.S. Department of Agriculture.
CME April live cattle futures ended down 0.275 cent at 141.625 cents per pound.
March feeder cattle futures were down 1.300 cents at 159.500 cents per pound.
(Reporting by Karl Plume in Chicago; Editing by Devika Syamnath)
Financial Post Top Stories
Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300