Chicago Mercantile Exchange (CME) cattle futures experienced significant declines on Tuesday. This downward trend was mirrored in the lean hog market, which also saw a decrease.
The most-active October live cattle futures (LCV24) closed at 175.600 cents per pound, down 3.425 cents. Similarly, the October feeder cattle futures (FCV24) finished 4.545 cents lower at 231.325 cents per pound.
Dennis Smith, a commodity broker and livestock analyst at Archer Financial Services, commented on the situation, stating, “The cattle market is undergoing another technical meltdown that is difficult to explain from a fundamental perspective.”
Altin Kalo, head economist at Steiner Consulting Group, added, “There haven’t been any dramatic changes in the fundamentals. Commodity funds have been reducing their net long positions in cattle, contributing to the downtrend in futures.”
The approach of Labor Day on September 2, which is a key grilling holiday, has also exerted pressure on the cattle market. Analysts noted that market participants are cautious about making aggressive purchases and will be closely monitoring buying trends leading up to the holiday.
The lean hog market mirrored the decline seen in cattle futures. Increased hog production has contributed to the downward pressure on prices. CME October lean hog futures (LHV24) ended at 76.400 cents per pound, down 0.400 cents.
Overall, the market remains under strain, with technical factors and upcoming holiday considerations influencing trading patterns.
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