Chicago | Reuters — Lean hog futures on the Chicago Mercantile Exchange rose more than two per cent on Monday on signs of firming cash hog values, rising wholesale pork prices and short-covering.
CME June lean hog futures settled up 2.05 cents at 86.15 cents/lb., with the July contract up 2.175 cents at 87.5 cents (all figures US$).
The CME lean hog index, a two-day weighted average of cash hog prices, rose by 51 cents, to $75.91/cwt. For pork, USDA priced the carcass cutout late Monday was at $84.38/cwt, up 97 cents from Friday and the highest since March 16.
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Commodity funds expanded their net short position in CME lean hog futures in the week to May 9, data from the U.S. Commodity Futures Trading Commission showed on Friday, leaving the market prone to bouts of short-covering.
CME live cattle futures closed mostly higher, with the most-active August contract settling up 0.3 cent at 162.75 cents/lb. But front-month June cattle ended down 0.075 cent at 164.325 cents.
CME August feeder cattle settled up 2.075 cents at 231.05 cents/lb.
The CFTC’s data on Friday showed that commodity funds cut their net long position in CME live cattle futures by 12,134 contracts in the week to May 9, to a net long of 94,010 contracts. Fund-driven long liquidation appeared to have slowed since then, analysts said.
In the wholesale beef market, USDA priced choice cuts of beef at $301.98/cwt, down $2.63 from Friday, while select cuts rose three cents, to $284.41 per cwt.
On the global front, Brazil, the world’s top chicken exporter, for the first time confirmed highly pathogenic avian influenza. Two cases were detected in wild birds and should not trigger a ban on imports of Brazilian poultry products, according to the Brazilian government.
— Julie Ingwersen is a Reuters commodities correspondent in Chicago.
