Chicago | Reuters — Chicago Mercantile Exchange Group lean hog futures firmed on Wednesday, supported by strong demand that has pushed cash prices higher.
“We’re still looking at tighter supplies in front of us,” said Rich Nelson, chief strategist at Allendale Inc.
Pork demand firms during the summer, with U.S. grilling holidays such as Father’s Day and Independence day still ahead.
The nearby June hogs contract firmed 1.825 cents, to 109.8 cents/lb. (all figures US$). Most-active July hog futures added 4.425 cents, to 112.425 cents/lb.
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The CME’s lean hog index, a two-day weighted average of cash hog prices, added 22 cents to $105.15/cwt.
News of easing COVID restrictions in China on Tuesday added support, as relaxed lockdowns could mean increased pork exports to the nation.
Live cattle futures also firmed, supported by optimism around expanded processing capacity as the U.S. Agriculture Department attempts to strengthen the U.S. food system.
CME June live cattle firmed 2.275 cents to 132.8 cents/lb., while the most-active August live cattle gained 2.525 cents to 132.9 cents/lb.
CME August feeder cattle added 4.6 cents to 169.725 cents/lb., supported by lower corn futures.
Beef packers slaughtered 125,000 head of cattle on Wednesday, in line with the week-ago pace and up 15.7 per cent from the same day in 2021.
Prices for choice cuts of boxed beef eased 12 cents, to $267.42/cwt, while select cuts firmed 26 cents, to $248.91, according to U.S. Agriculture Department data.
Cash cattle traded from $135/cwt in the southern U.S. Plains to $138/cwt in the northern Plains, USDA said.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
