CME update: lean hog futures close mixed as slaughter pace ramps up
Hog futures were mixed on 2 June as the rising hog slaughter pace puts pressure on wholesale pork prices.Reuters reports that the front two CME contracts declined on Tuesday. June lean hogs ended down 2.200 cents at 54.000 cents per pound. Most-active July futures closed lower at 54.875 cents – a 0.275 cent decline. Back months ended higher.
The USDA reported the US pork cutout down $6.67 at $74.37 per cwt on Tuesday afternoon.
Currently, US slaughterhouses are processing a backlog of hogs and cattle that built up in the last two months as COVID-19 outbreaks sickened slaughterhouse workers. The spate of illnesses forced numerous meat plants to close.
"The slaughter numbers have come back much faster than the industry anticipated. [Meat] packers have done a great job getting everybody back to work and working through these animals," said Jeff French, analyst with Top Third Ag Marketing in Chicago.