Chicago | Reuters — Lean hog futures on the Chicago Mercantile Exchange firmed on Thursday, erasing the week’s earlier losses as smaller supplies of market-ready hogs offset seasonal pressure.
“Fundamentally, we know we’re fairly tight on supplies. We’re not getting expansion,” said Alan Brugler, president of Brugler Marketing.
The CME February lean hogs contract added 3.85 cents, to 89.2 cents/lb., a 4.5 per cent daily gain (all figures US$). The nearby December hog contract firmed 0.225 cents, to 83.125 cents/lb.
Processors slaughtered 492,000 hogs, up 9,000 from the same week a year ago.
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The CME’s lean hog index, a two-day weighted average of cash hog prices, fell 32 cents, to $83.89/cwt.
Meanwhile, live cattle eased, while feeder cattle climbed for a third consecutive session as analysts expect the U.S. herd to continue to tighten.
“We liquidated a lot of cows because of no grass. We also put a lot of heifers in the feedlots,” Brugler said. “The really tight supplies in cattle are probably through the last half of 2023, into 2024.”
CME benchmark February live cattle eased 0.25 cent, to 155.425 cents/lb. The spot December contract lost 0.025 cent, to 153.05 cents/lb.
CME January feeder cattle added 0.6 cents, to 181.075 cents/lb.
Cash cattle traded steady in the northern U.S. plains at $158/cwt, but was steady-to-firmer in parts of the southern plains at $155/cwt, the U.S. Department of Agriculture said.
Boxed beef prices fell on Thursday, with choice cuts slipping $1.31, to $253.57/cwt, while select cuts fell one cent, to $225 per cwt, USDA said.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
