By Christopher Walljasper
CHICAGO, August 18 (Reuters) – Chicago Mercantile Exchange lean hog futures fell on Thursday, under pressure from lower wholesale pork prices and weak export demand, analysts said.
“We are going to have more supply, and that puts pressure on the wholesale market,” said Altin Kalo, economist at Steiner Consulting Group.
CME August October lean pigs LHV2 fell 4.750 cents to 93.300 cents per pound, down 4.84%.
Wholesale hog prices fell early in the session but rallied late in the day, with hog carcasses adding $1.44 to $119.91 per cwt, the USDA said.
The CME Lean Pork Index .IHX a two-day weighted average of spot hog prices fell 44 cents to $120.62 a hundredweight.
U.S. exporters sold 13,500 tons of pork in the week ended Aug. 11, down 43% from the previous four-week average, the USDA said.
“The export numbers released this morning weren’t very encouraging. Sales to China were almost non-existent, so I think that added downward pressure,” Kalo said.
Live cattle futures also fell, dragged lower by lower spot values in the southern US Plains.
“Even though you have quite high prices in some parts of the country, the average price is still going down because of what’s happening in the south,” Kalo said.
CME October VUL2 live cattle futures fell 1,100 cents to 144,750 cents a pound, while feeder cattle futures CME September FCU2 fell 1.850 cents to 185.275 cents a pound.
Cash cattle prices in the US Southern Plains were trading around $141 per cwt, a reduction from the Northern Plains, which regularly traded at $148 per cwt.
Wholesale beef prices were flat or weaker, with some cuts down 42 cents to $237.47 per cwt, while select cuts firmed 5 cents to $264.39 per cwt.
(Reporting by Christopher Walljasper; Editing by Shailesh Kuber)
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