By Julie Ingwersen
CHICAGO, Aug 12 (Reuters) – Chicago Mercantile Exchange lean hog futures closed lower on Friday on cooling wholesale pork costs and profit-taking at week’s end, a day after the benchmark October contract LHV2 set a life-of-contract excessive.
Cattle futures additionally set again on profit-taking, however the most-active October live cattle contract LCV2 posted a second straight weekly advance, bolstered by firming money markets. Slaughter-ready cattle traded within the southern Plains this week at $140 per hundredweight (cwt), up $4 to $5 from final week.
Commodity funds maintain web lengthy positions in each live cattle and lean hog futures, leaving the markets susceptible to bouts of lengthy liquidation.
CME August October lean hogs LHV2 settled down 1.050 cents on Friday at 100.025 cents per pound, a day after posting a life-of-contract excessive at 101.650 cents. Despite Friday’s lower shut, the contract ended the week up 1.7%, its fourth straight weekly advance.
The spot August hog contract LHQ2, which expires subsequent week, ended down 0.675 cent on Friday at 121.725 cents.
Wholesale pork costs eased. The U.S. Department of Agriculture (USDA) priced pork carcasses at $121.83 per cwt on Friday afternoon, down $1.48 from Thursday and the bottom since July 14.
Meanwhile, CME October LCV2 live cattle futures settled down 0.600 cent Friday at 144.500 cents per lb however eked out a weekly advance of 0.4%. CME September feeder cattle futures FCU2 fell 1.225 cents to settle at 183.375 cents per lb.
The USDA in its month-to-month provide/demand report raised its projections for 2022 and 2023 home beef manufacturing.
The authorities lowered its estimate of 2022 pork manufacturing however left its 2023 pork manufacturing forecast unchanged.
(Reporting by Julie Ingwersen; Editing by Tom Hogue)
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