U.S. livestock: Lean hogs climb on strong exports

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Chicago | Reuters – Chicago Mercantile Exchange lean hog futures climbed to their highest in nearly two weeks on Thursday, supported by strong weekly export sales and tighter supplies of market-ready hogs, analysts said.

“Hog numbers are still running below last year. If that continues to tighten up, I think that boosts the back months a little bit,” said Matthew Wiegand, risk management consultant at FuturesOne.

In CME lean hog futures, the benchmark December contract settled 1.925 cents higher at 77.875 cents per pound, after reaching 78.225, its highest since Oct. 20. February lean hogs closed the day 1.625 cents higher at 80.175 cents per pound.

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U.S. exporters sold 45,700 tonnes of pork during the week ended Oct. 28, up 55 percent from the week prior and 72 percent more than the previous four weeks, the U.S. Department of Agriculture said. Mexico and China were the biggest buyers.

The CME’s lean hog index, a two-day weighted average of cash hog prices, eased 0.340 cents to 78.70 cents per pound.

Meanwhile, live cattle futures eased after hitting a two-month high on Wednesday.

December live cattle futures fell 1.025 cents to 130.625 cents per pound. The most-actively traded January feeder cattle contract eased 1.050 cents to settle at 158.175 cents per pound.

Wholesale beef continued to strengthen, with choice cuts adding $1.73 to $290.22 per cwt, while select cuts gained 50 cents to $268.22 per cwt, the USDA said.

“We continue to see Boxed beef tick up and strong packer runs,” said Wiegand. “I think that moves us into a tighter seasonal time frame, and that should boost cash prices.”

Cash cattle trade held mostly steady at $128.00 per cwt, though some cattle in Nebraska traded for $129.00, the USDA said.

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Christopher Walljasper

Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.

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