Live cattle, lean hog futures establish contract highs - CME
Contract high set on firm cash prices and strong demand from packers
10 February 2022
2 minute read
Chicago Mercantile Exchange (CME) live cattle futures set a contract high on Wednesday on firm cash prices and strong demand from packers, while lean hogs also set a new high, traders said.
April live cattle ended 1.650 cents higher at 147.825 cents per pound and set a high of 147.925 cents, reported Reuters. March feeder cattle closed 1.400 cents to 168.275 cents per pound after touching a five-week high of 168.850 cents.
Negotiated cash cattle trade was moderate in Kansas, the US Department of Agriculture (USDA) said, with live purchases trading steady to $1 higher compared to last week at $140 per hundredweight.
Choice cuts of boxed beef fell by $1.67 to $275.79 per cwt, while select cuts dropped by $1.79 to $272.05 per cwt, the USDA said.
In a separate monthly agricultural supply/demand report, the USDA raised its outlook for US fed cattle prices for the second half of the year because of firm demand from meatpackers.
Packers on Wednesday slaughtered an estimated 122,000 cattle, up from 121,000 cattle a week ago and 116,000 cattle a year ago, according to daily USDA data.
The agency, in its monthly report, also raised its US hog price forecast, citing current higher prices and expectations for slower growth in production. The average price for barrows and gilts was pegged at $65 per cwt, up from $60.5 per cwt in January.
In hog futures, CME April lean hogs settled 0.975 cents higher at 104.775 cents per pound and set a contract high of 105.475. Thinly traded February hogs slipped 0.100 cent to end at 90.225 cents per pound.
Processors slaughtered an estimated 472,000 hogs on Wednesday, compared to 432,000 hogs a week ago and 489,000 hogs a year ago, the USDA said.
Source: Reuters
