Chicago | Reuters — Chicago Mercantile Exchange hog futures rallied on Tuesday amid expectations the U.S. Department of Agriculture will confirm a smaller pig herd in a report due out on Thursday, analysts said.
USDA, in its quarterly Hogs and Pigs report, is expected to show the herd was about 2.9 per cent smaller on Dec. 1 compared to a year earlier, a Reuters survey of analysts showed.
Most-active February lean hog futures settled up 2.95 cents at 82.425 cents/lb. and set their highest price since Nov. 25 at 82.775 cents (all figures US$). April hogs climbed 2.075 cents to close at 85.575 cents and reached their highest price since Dec. 14 at 85.775 cents.
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An improved appetite for risk among investors helped support markets after U.S. stocks and commodities including crude oil and livestock futures fell on Monday on concerns about rising coronavirus cases, analysts said. Wall Street closed significantly higher on Tuesday, while oil prices gained as investors sought riskier assets.
CME live cattle futures also advanced, with the February contract touching its highest price since Dec. 15 before settling up 0.95 cent at 136.925 cents/lb. CME March feeder cattle jumped 1.325 cents to close at 161.825 cents.
Wholesale boxed beef prices slumped, with choice cuts down 99 cents at $261.39/cwt and select cuts down 75 cents at $249.92, according to daily USDA data.
The agency on Thursday will issue a monthly Cattle on Feed report that is expected to show the U.S. on Dec. 1 had the same number of cattle on feed for the slaughter market as a year earlier, according to a Reuters survey of analysts. They estimated that cattle placements and marketings in November were up from a year ago.
In another report, USDA on Wednesday is set to issue monthly data on the amount of frozen meat held in cold storage facilities.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
