Hog futures close weaker - CME

Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures tumbled on Wednesday after climbing to records on dwindling US supplies, reported Reuters.

Futures prices have set all-time highs since Washington over the weekend added to supply worries by suspending cattle imports from Mexico over an outbreak of New World screwworm in Mexican cattle.

The United States imports Mexican cattle to fatten for slaughter. Such imports have become increasingly important to meet consumer demand for beef after US producers slashed their herds to the lowest level in decades due to a years-long drought that burned up pasture lands used for grazing.

"Beef consumption is still very good," Tyson Foods CEO Donnie King said on a webcast of BMO's Farm to Market Conference.

However, the markets were due for a correction after surging, said Matt Wiegand, broker for FuturesOne.

"We're pretty deeply overbought," he said.

CME August live cattle futures fell 2.25 cents to 209.375 cents per pound after setting a high of 214.500 cents.

August feeder cattle futures sank 4.025 cents to end at 301.975 cents per pound after reaching a high of 307.675 cents.

CME lean hog futures were also weaker, with the June contract closing 0.65 cent lower at 98.85 cents per pound.

Traders on Thursday will review weekly US export sales data for beef and pork.