Home Business Nearby hog futures rise in rebound from six-month low at CME

Nearby hog futures rise in rebound from six-month low at CME

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CHICAGO — Chicago Mercantile Exchange lean hog futures ended higher in nearby contract months on Wednesday, as the market rebounded from a drop to its lowest prices in more than six months.

Most-active December hogs recovered after dropping 12.5% since the start of the month on concerns about slowing U.S. pork exports and rising supplies, analysts said.

Deferred hog contracts still finished lower.

“Exports are slowing. That’s a fact,” said Dennis Smith, commodity broker at Archer Financial Services.

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CME October lean hog futures ended up 1.900 cents at 82.275 cents per pound, after falling on Tuesday to their lowest price since March 4. December hogs edged up 0.075 cent to 72.250 cents per pound after reaching their lowest price since Feb. 25 earlier on Wednesday.

In the cattle markets, futures prices were mostly lower amid concerns about softening demand.

CME December live cattle closed down 0.200 cent at 129.450 cents per pound after falling on Monday to its lowest price since June 1 at 125.675 cents.

October feeder cattle slid 1.650 cents to 156.500 cents per pound after touching its lowest since June 11 on Monday at 154.775 cents.

The markets may have established near-term floors for prices on Monday, when a fire at a major JBS USA beef plant raised concerns that ranchers would lose a place to deliver cattle for slaughter, analysts said.

“We flushed this market of speculative length,” Smith said. “We’ve taken a lot of the premium out of the board.”

Traders on Thursday will review export sales data for U.S. beef and pork.

Brazil continued to ship beef to China after an export ban took effect earlier this month, with the two sides in talks on what to do with possibly thousands of tonnes of meat in legal limbo, according to analysts and people with knowledge of the matter. (Reporting by Tom Polansek; Editing by Shailesh Kuber)