December 5, 2019

US cattle futures dropped on the CME as lean hogs inch higher

On the Chicago Mercantile Exchange (CME), technical selling pressures have caused US cattle futures to fall, but lean hog futures closed higher, reported Reuters.

Brokerage RJ O'Brien said the market will find it difficult to rationalise stiff premiums of futures to cash with short-term fundamentals being top heavy. US cattle futures have dropped after hitting their highest level in more than two weeks.

February live cattle futures on the CME closed 1.475 cents at 124.175 cents per pound. The contract fell under its 10 day, 20 day and 30 day moving averages, but found support at the tail end of its 20 day Bollinger range.

January live cattle futures on the CME also fell 1.5 cents to 140.875 cents per pound, ending at near session lows. Feeder cattle powered early, before falling after the January contract was unable to garner support above its 40 day moving average.

The CME live hog market performed better with US President Donald Trump telling reporters that discussions on the US-China trade deal is going well. Benchmark February lean hog futures on the CME ended 0.05 cent at 68.425 cents per pound.

-  Reuters