CME update: lean hog futures climb alongside wholesale meat prices

US lean hog futures rose on 6 May as US wholesale prices increased.

7 May 2021, at 8:37am

Reuters reports that Pork is in high demand in supermarkets and restaurants as the distribution of federal stimulus checks has prompted consumers to spend more on food, analysts said. COVID-19 vaccinations and easing restrictions on businesses are also leading more people to eat out, they said.

The pork cut-out value increased by $1.95 per cwt to $113.86 per cwt, the USDA said.

A decline in average US hog weights is contributing to tighter US pork supplies at a time of strong sales, traders said. The average weight in the week ended 1 May was 285.1 pounds, down one pound from a week earlier and 6.3 pounds a year ago, according to USDA data.

Export demand remained solid. Pork export sales for the week ended 29 April reached 48,200 tonnes for 2021 delivery, up 36% from the previous week, according to the USDA.

CME most-active June lean hogs set a contract high of 115 cents per pound and settled up 0.050 cent at 114.475 cents per pound. July hogs set a contract high for the fifth consecutive day and ended up 0.175 cents at 114.650 cents per pound.

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