Chicago | Reuters — Chicago Mercantile Exchange hog futures rallied on Friday, with most contracts setting new highs as strong prices for pork and concerns about supplies underpinned the market.
Most-active June lean hog futures jumped 3.775 cents to finish at 125.85 cents/lb., closing above the high end of its 20-day Bollinger range after facing resistance at that key technical point on Thursday (all figures US$).
The contract peaked at its all-time high of 126.15 cents during the session.
CME’s most-active June live cattle gained 0.425 cent to 137.375 cents/lb.
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May feeder cattle futures fell 1.175 cents to 165.325 cents/lb. The contract dropped below its five-day and 20-day moving averages.
A U.S. Agriculture Department report on Friday afternoon showed that the amount of cattle on feed as of March 1 was 101 per cent of the year-earlier total. Analysts had been expecting the report to show 101.1 per cent.
Placements during February were 109 per cent of February 2021, topping market forecasts for 106.1 per cent, and marketings were 105 per cent of the year-ago total, also above trade forecasts for 104.2 per cent of the year-ago total.
Choice cuts of boxed beef fell by 32 cents to $262.09/cwt by Friday morning, according to USDA data. Select cuts were $1.55 lower at $251.04 per cwt.
— Reporting for Reuters by Mark Weinraub in Chicago.
