CHICAGO, May 23 (Reuters) - Chicago Mercantile Exchange lean hog futures slumped to a February low on Thursday under pressure from solid U.S. production and weaker cash prices, traders said.
Cattle futures hit March highs before backpedaling at the CME.
Nearby hog futures have pulled back 14% from a contract high last month as U.S. slaughtering is running slightly ahead of last year.
"Those lofty levels were heavily fund-driven and had placed big premiums in futures that so far the spot markets have not been able to realize," broker StoneX said.
CME June hog futures ended down 0.875 cent at 94.525 cents per pound, after falling to their lowest price since Feb. 13.
The U.S. Department of Agriculture priced the pork carcass cutout at $98.69 per hundredweight (cwt), a drop of $1.38 from Wednesday. Pork belly values sank by $5.01, while ham values fell by $1.90.
Belly prices have been trending sideways for three months, except for a short rally in April, Steiner Consulting Group said. For hams, demand has been inconsistent since top-buyer Mexico bought significant amounts after Easter, the firm said.
"The problem is that since then sales to Mexico have been especially soft," Steiner Consulting Group said.
The U.S. Department of Agriculture reported U.S. pork export sales of 26,300 metric tons for 2024 in the week ended May 16. That was down 3% from the prior four-week average.
For U.S. beef, weekly net export sales were 21,500 metric tons for 2024, up 32% from the prior four-week average.
Wholesale boxed beef prices eased for choice cuts and edged higher for select cuts on Thursday, after values surged last week.
CME June live cattle closed 0.65 cent lower at 183.525 cents per pound after hitting the highest level since March 21. August feeder cattle sagged 1.45 cents to settle at 261.450 cents per pound after hitting the highest price since March 25. (Reporting by Tom Polansek; Editing by Shailesh Kuber)
