Chicago | Reuters — CME Group hog futures rose to their highest level in more than a month on Thursday, supported by strong exports and concerns about a slowing slaughter, traders said.
Cattle futures ended the trading day close to unchanged.
The U.S. Agriculture Department on Thursday morning said that export sales of pork totaled 36,800 tonnes in the week ended May 19, up 52 per cent from a week earlier.
Traders said that demand could pick up further as China looks to end some COVID-19 lockdowns.
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At the same time, supplies could be tighter as the slaughter has slowed ahead of the U.S. Memorial Day holiday.
The nearby June hogs contract rose 2.05 cents to 111.1 cents/lb. (all figures US$). The contract peaked at 111.6 cents, the highest on a continuous basis for the front-month contract since April 22.
Most-active July hog futures gained 3.875 cents, to 111.825 cents/lb.
June hogs rose above their 40-day moving average, while the July contract topped its 30-day and 100-day moving averages.
Hog slaughter so far this week has totalled 1.884 million head, down 15,000 from a week earlier and 47,000 head lower than a year ago.
CME June live cattle edged up 0.1 cent to settle at 132.4 cents/lb., while the most-active August live cattle gained 0.075 cent to 132.6 cents/lb.
CME August feeder cattle fell 1.275 cents to 167.95 cents/lb.
Beef export sales fell to 20,000 tonnes from 23,300 tonnes.
Prices for choice cuts of boxed beef were reported at $263.97/cwt on Thursday afternoon, up $1.04 from a day earlier, while select cuts rose to $244.43, from $244.06/cwt, according to USDA data.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.
