U.S. livestock: CME cattle, hog contracts end firm

CME October 2021 live cattle (candlesticks) with October 2021 lean hogs (pink line, left column). (Barchart)

Chicago | Reuters — CME cattle and hog futures rose on Wednesday, supported by concerns about near-term supplies, traders said.

Analysts were expecting a U.S. Agriculture Department report on Friday to show that the number of cattle on feed as of July 1 was 99 per cent of the year-earlier amount. Placements during June were seen at 95.9 per cent of the June 2020 total and marketings 102.1 per cent of a year ago.

CME August lean hog futures gained 1.575 cents to 106.575 cents/lb., while October firmed 1.375 cents to 92.4 cents (all figures US$).

The October hogs contract hit a five-week peak but faced resistance at the high end of its 20-day Bollinger range.

Daily hog slaughter held steady at 474,000 head on Wednesday, USDA said, matching the nearly four-week high hit on Tuesday.

CME’s most-active October live cattle futures rose 0.55 cent to 125.25 cents/lb., while nearby August futures gained 0.275 cent to 120.05 cents.

CME August feeder cattle finished 1.25 cents higher at 156.775 cents/lb.

Boxed beef prices were mostly lower, with choice cuts rising 36 cents, to $265.24/cwt, and select cuts adding 19 cents, to $248.77/cwt, USDA said.

— Reporting for Reuters by Mark Weinraub in Chicago.

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