Hog, cattle futures rise on robust demand for pork and beef - CME
Cash market strength underpinned the hog futures market
24 October 2022
2 minute read
By: Chicago Mercantile Exchange (CME) hog and cattle futures rose on Friday, with strong consumer demand for pork and beef pushing prices higher, Reuters reported, citing traders as its source.
Live cattle received a boost from concerns about tight supplies.
"The big thing on the cattle is that the beef market seasonally found some really good strength," said Don Roose, president of US Commodities in West Des Moines, Iowa. "On the supply side, these numbers continue to tighten on the live cattle. It is the tighter numbers and the high beef prices that pulls us up."
After the close, the US Department of Agriculture said that the amount of cattle on feed as of October 1 was 99.0% of the year-ago total. That was slightly lower than market expectations for 99.1%.
Placements during September were 96.0% of the September 2021 placements. Analysts were expecting the report to show placements at 96.4%.
Marketings were 104% of the year-earlier total, matching expectations.
CME December live cattle rose 0.75 cent to 152.425 cents per lb, hitting a new contract high of 152.5 cents during the session.
Spot October live cattle contract gained 0.7 cent to 150.475 cents per lb, just off its session high of 150.5 cents.
The daily peak was the highest on a continuous basis for the front-month contract since August 10, 2015.
CME November feeder cattle ended 0.8 cent higher at 178.35 cents per lb.
CME December lean hog futures rose 2.1 cents to settle at 89.125 cents per lb.
Cash market strength underpinned the hog futures market, Roose said.
