21 November 2024

2 minute read

By: Global Ag Media

North America

Chicago Mercantile Exchange (CME) hog futures hit their highest in nearly a week on Wednesday, supported by tight hog supplies that have buoyed prices in the cash market, Reuters reported, citing traders.

"Right now the conversation in the market is how tight hog supplies are on the ground," said Altin Kalo, chief economist at Steiner Consulting Group. Hog numbers, Kalo said, "reflect decisions that were made 12 months ago. And 12 months ago, those guys (hog producers) were losing money. So we're seeing the effect of those negative margins."

Most-active CME February lean hogs settled up 1.600 cents at 84.475 cents per pound. Front-month December hogs finished up 0.975 cent at 80.525 cents.

Both contracts were trading below the CME's Lean Hog Index, a two-day weighted average of cash prices, which was last reported at 88.09 cents.

In the wholesale pork market, the US Department of Agriculture (USDA) priced pork carcasses on Wednesday afternoon at $94.60 per hundredweight (cwt), down 8 cents from Tuesday.

CME cattle markets were mixed, with live cattle futures ending lower while feeder cattle rose.

Benchmark February live cattle futures settled down 0.075 cent at 187.925 cents per pound, turning lower after a climb to 188.550 cents, the contract's highest since Oct. 29. Front-month December cattle ended down 0.275 cent at 186.300 cents.

Traders await direction from cash cattle markets and from monthly feedlot data due from the USDA on Friday. Analysts surveyed by Reuters on average expect the government to report that placements of cattle into US feedlots during October rose by 3.8% from a year earlier.

Feeder cattle futures rose for a fourth straight session on demand for stocker calves in the wake of rains this month that replenished grazing pastures in the southern Plains. CME January feeder cattle settled up 0.325 cent at 252.325 cents per pound after reaching 252.700 cents, the contract's highest level since July 31.