“This week particularly is after we transition to purchasing for a lower-demand interval, put up holidays,” mentioned Wealthy Nelson, chief strategist at Allendale Inc. “Packer margins are so harassed proper now, from this drop in beef however nonetheless sturdy money cattle.”
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Boxed beef costs gained after steep declines within the final week, with alternative cuts including $6.31 to $248.96 per hundredweight (cwt), whereas choose cuts firmed 63 cents to $219.77 per cwt, the U.S. Division of Agriculture mentioned.
In the meantime, lean hogs eased, although seasonal losses have been capped by optimism that lifted COVID-19 restrictions in China may imply extra U.S. exports to the nation.
“Seasonally, we should always have nearly yet another week left of strain. The difficulty for the hog market is, we’ve all been up and down based mostly on wild exaggerations of Chinese language shopping for expectations,” mentioned Nelson.
CME February lean hogs fell 0.275 cents to 86.650 cents per pound.
Close by December hogs inched up 0.100 cent to 82.375 cents per pound.
The CME’s lean hog index, a two-day weighted common of money hog costs, added 15 cents to $82.94 per cwt. (Reporting by Christopher Walljasper in Chicago; Modifying by Maju Samuel)