26 December 2024

2 minute read

By: Global Ag Media

North America

Chicago Mercantile Exchange (CME) lean hog futures finished flat on Tuesday as strong demand for US pork underpinned the market a day after federal data showed the nation's herd was slightly bigger than expected, analysts said.

Cattle futures eased.

Livestock traders assessed supplies and demand after the U.S. Department of Agriculture on Monday said the hog herd on Dec. 1 was up 0.5% from a year earlier. Some traders questioned whether the agency may be overcounting hogs.

The USDA, in another report issued after trading ended on Monday, said there were 391.1 million pounds of frozen pork in U.S. cold storage facilities at the end of November, the lowest level for that time since 1997. That was down 8% from the previous month and 6% from a year earlier.

"Cold storage numbers show demand is still very strong, especially for bellies, which are down 53% from the same time last year," said Dan Norcini, an independent livestock trader.

CME February lean hog futures LHG25 were unchanged at 84.375 cents per pound at the close of trading. April hogs LHJ25 declined slightly.

The USDA's quarterly report on the size of the nation's herd showed lower inventory levels for heavier hogs, compared to a year ago. That suggests lower hog slaughter numbers into the new year, Steiner Consulting Group said in a note.

Larger inventory levels for lighter weight market hogs point toward high hog slaughter going into the second quarter of 2025, the firm added.

In CME beef markets, February live cattle futures LCG25 were down 0.075 cent at 187.375 cents per pound while January feeder cattle futures FCF25 slipped 0.75 cent to 255.85 cents per pound.

CME livestock markets will close on Wednesday for Christmas. On Friday, the USDA is slated to report weekly U.S. pork and beef export sales data, one day later than usual because of the holiday.

"A lot of guys are done trading for the year, meaning the liquidity will be lower, allowing for exaggerated price moves," Norcini said.