Livestock futures at the Chicago Mercantile Exchange (CME) experienced a downturn on Thursday, driven by significant fund selling and weakening wholesale prices, according to traders.
Cattle futures saw notable declines as market sentiment was affected by these factors. However, the drop in Chicago grains futures provided some support to the cattle market.
Lean hog futures also ended lower, influenced by cooling summer weather that reduced heat stress on swine. Additionally, signs of a slowing in herd culling in the Chinese hog market contributed to the drop. The CME October lean hog futures closed down 0.950 cent at 73.625 cents per pound.
Feeder cattle futures continued to face pressure, remaining at levels not seen since December. Deferred futures set life-of-contract lows. The most-active October feeder cattle futures closed down 1.475 cents at 237.425 cents per pound.
October live cattle futures also fell, ending 1.250 cents lower at 178.025 cents per pound.
Cash cattle bids are currently $2 to $3 per hundredweight (cwt) lower than the previous week, with bids around $186 per cwt in southern markets and $193 per cwt in the northern markets. Feeder cattle sales have similarly declined, running $10 lower than the previous week.
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