Live cattle firmed on strong beef demand - CME
Lean hog futures benefit from tighter supply
15 February 2022
2 minute read
Chicago Mercantile Exchange (CME) live cattle futures firmed on Monday, supported by strong beef demand and slaughter, analysts said.
"The next few months – late March, early April, slaughter-ready cattle are a little tighter," said Austin Schroeder, commodity analyst at Brugler Marketing. "That might help to lend a little more support to those cash prices, give those feedlots a little more leverage on the packers."
April live cattle ended 0.175 cents higher at 146.350 cents per pound, reported Reuters. March feeder cattle closed 0.650 cent higher at 166.875 cents per pound, supported by Chicago Board of Trade corn futures that traded lower for much of the day before rebounding late in the session.
Cash cattle trade was quiet on Monday, holding steady near $140 per cwt, across the US Plains, according to the US Department of Agriculture (USDA).
Packers slaughtered an estimated 121,000 cattle on Monday, in line with pace from a week ago and 57.14% higher than a year ago, the USDA said.
Choice cuts of boxed beef fell 56 cents to $273.96 per cwt, while select cuts added 92 to $268.75 per cwt, the USDA said.
CME lean hog futures also benefitted from tighter supplies amid strong demand.
April lean hog futures LHJ2 added 0.100 cents to 102.325 cents per pound.
"Cash prices have been rallying. It's overall good demand," said Schroeder.
The CME's Lean Hog Index .IHX, a two-day weighted average of cash hog prices, added $1.18 to $88.92 per cwt.
Hog slaughter eased to 470,000 head, down 2.3% from the same day a week ago but up 16% from the same day a year ago, the USDA said.
Source: Reuters
