Cash market lifts US hogs – CME
Chicago Mercantile Exchange (CME) live cattle futures climbed on Friday, supported by robust beef prices that are likely to remain strong as retailers prepare for Labour Day demand through the month of August.
“The retailer will have beef going into the meat case, and that’s going to keep the product market together,” said Altin Kalo, economist at Steiner Consulting Group.
CME August live cattle futures added 0.275 cents to 136.450 cents per lb, while the most-active October contract climbed 0.400 cents to 142.225 cents.
Wholesale beef prices climbed, with choice cuts adding $1.47 to $269.24 per cwt, according to the the US Department of Agriculture, while select cuts gained $1.44 to $242.25 per cwt.
Outside economic forces could pressure beef demand, Kalo said, though fewer market-ready cattle should underpin live cattle futures.
“The talk of recession and slow down, that’s going to weigh on the market. But at the same time, we’re going to have fewer cattle to sell. At least for a minute here, it seems like this cattle market has a little more support, at least short term.”
CME feeder cattle futures firmed, with most-active September feeder cattle futures gaining 1.350 cents to 181.550 cents per lb.
Meanwhile, CME lean hog futures climbed on Friday, supported by strong cash prices that have lifted both nearby and the most-active October contracts.
“In the fall, we’re going to have higher slaughter numbers, seasonally, but for a minute here, the strength in the hog market and the product market has surprised people and supported the front end,” said Kalo.
The CME Lean Hog Index, a two-day weighted average of cash hog prices, added 85 cents to $120.58 per cwt, its highest since 21 June 2021.
CME’s nearby August lean hog futures firmed 1.525 cents to 120.65 cents per lb, while the most-active October hogs gained 0.900 cents to 97.225 cents.
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