* Hogs lead livestock lower amid weak pork prices
* Profit-taking, technical selling in hogs
* Cattle sink on profit-taking despite firm beef
By Karl Plume
CHICAGO, April 18 (Reuters) – U.S. hog futures tumbled more
than 2 percent on Wednesday on profit taking and technical
selling amid eroding pork values and declining prices in several
agricultural commodity markets.
Cattle prices dropped more than 1 percent in a profit-taking
setback after the prior day’s solid gains and feeder cattle
eased 0.5 percent.
Plunging hog prices weighed down livestock futures in
general. The benchmark June contract hit its lowest level
in more than a year on worries about pork demand.
“The fact that we still see continued wholesale pork
declines at a time when this market should be seasonally
rallying is a big concern,” said Rich Nelson, analyst with
Allendale Inc.
“Hogs appear to be leading the meats lower. You could argue
that there is some broader commodity liquidation going on,” he
said.
The wholesale pork price fell by $1.10 to $76.75 per cwt
late on Tuesday, according to the U.S. Department of
Agriculture.
Sinking grain markets added pressure to cattle and hog
markets as well.
“You’re taking some of the grain premium out of the market.
Part of the reason livestock went so high is because grain went
so high. As the grain market is coming unraveled today, so is
the livestock,” said Don Roose, analyst with U.S. Commodities.
Benchmark June hogs fell 1.725 cents, or 1.92
percent, to 88.050 cents by 11:00 a.m. CDT (1600 GMT) and July
hogs shed 1.600 cents, or 1.77 percent, to 88.800 cents.
Cattle prices retreated in sympathy with hogs, despite signs
that beef prices were stabilizing after recent declines.
Wholesale beef prices have increased nearly $5 per cwt since
Friday, suggesting supermarkets were preparing for the spring
grilling season.
June live cattle futures dropped 1.575 cents, or 1.35
percent to 115.000, the contract’s largest drop in 2-1/2 weeks.
May feeder cattle dipped 0.900 cent to 152.225, a
0.59 percent decline.
(Editing by Bob Burgdorfer)
