CME lean hogs fall on technical selling
By Renee Hickman
CHICAGO, Nov 15 (Reuters) -Chicago Mercantile Exchange lean hog futures dipped Friday on technical selling and a lower pork cutout, while feeder cattle turned higher on strength in the cash market, traders said.
CME December lean hog futures LHZ24 finished down 0.600 cents at 79.500 cents per pound.
CME December live cattle LCZ24 futures were unchanged at 182.95 cents per pound, while most-active January feeder cattle futures FCF25 settled up 4.025 cents to close at 247.225 cents per pound.
The pork cut-out fell on Thursday afternoon, which spurred selling from some speculative funds holding a large net long position, said Austin Schroeder, a commodity analyst at Brugler Marketing and Management.
"I think there's a little bit of taking some money off the table," said Schroeder.
In the wholesale market, pork carcasses gained $3.04 to $97.11 per hundredweight (cwt) on Friday afternoon, according to the U.S. Department of Agriculture, having lost $3.19 to $94.07 per cwt on Thursday afternoon.
The CME lean hog index price on Friday was $89.78 for the two days ended Nov. 13, down from $89.94 for the two days ended Nov. 12.
In feeder cattle, Schroeder said, a stronger cash trade inspired the rally in futures, while a weaker cash trade pressured live cattle futures.
Boxed beef prices fell at the end of the week, with choice boxed beef prices dipping $0.46 to $303.34 per cwt, while select beef slid $0.52 to $276.14 per cwt, the USDA reported on Friday afternoon.
Beef packer margins fell further into the red, with losses estimated at $72.90 per head on Friday, compared to losses of $52.10 per head on Thursday and losses of $51.95 per head last week, according to livestock marketing advisory service HedgersEdge.
Reporting by Renee Hickman in Chicago; Editing by Shailesh Kuber
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