CME Lean Hogs Hit One-Week Low, Pork Belly Values Fall


(MENAFN- Live Mint) By Tom Polansek

CHICAGO, Nov 5 (Reuters) - Chicago Mercantile Exchange lean hog futures fell to their lowest level in more than a week on Tuesday as profit-taking extended the market's setback from contract highs last week, analysts said.

U.S. pork belly values also weakened following recent gains.

The futures market was due for a setback after soaring about 38% from mid-July to the beginning of November as U.S. hog supplies looked tighter than expected, analysts said. Prices may be nearing a top, although it is not confirmed that the market has peaked, they said.

CME December lean hog futures dropped 2.1 cents to finish at 81.125 cents per pound.

The U.S. Department of Agriculture quoted the wholesale pork carcass cutout at $101.43 per hundredweight (cwt), which was down $2.58. Belly values sank $6.28 and hams lost $2.65.

Traders are keeping an eye on how Tuesday's U.S. presidential election affects the Mexican peso, as Mexico is a major export market for U.S. hams and a stronger peso could support demand. The peso rose against the U.S. dollar after earlier leading losses among currencies.

In beef markets, CME December live cattle ended down 0.3 cent at 184.775 cents per pound, continuing a setback from a March high reached a week ago.

CME January feeder cattle futures slipped 0.075 cent to 242.350 cents per pound.

The select boxed beef cutout fell $1.92 to $285.24 per cwt, while choice boxed beef prices rose slightly, the USDA said. (Reporting by Tom Polansek; Editing by Shailesh Kuber)

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