Lean hog futures firm - CME

Live cattle futures also firm
calendar icon 7 January 2022
clock icon 3 minute read

"We've been under some pressure recently, but the cash trade was still at $138 to $140," said Doug Houghton, technical analyst at Brock Capital Management. "That's premium to where the February has been trading, so that's supportive of the nearby."

CME February live cattle futures settled 0.100 cent higher at 137.350 cents per pound, after dropping near its 100-day moving average earlier in the session, reported Reuters.

CME March feeder cattle futures added 1.100 cents to 167.275 cents per pound.

Cash cattle prices were steady-to-softer across the Great Plains, with prices in Nebraska ranging $140 to $138 per cwt.

Cattle slaughter rates have lagged much of the week, with 113,000 head processed on Thursday, 4,000 behind last week and 6,000 head behind the same week last year.

Wholesale beef prices continued its weekly climb, with select cuts firming $1.03 to $260.64 per cwt, while choice cuts gained $1.63 cents to $268.56 per cwt.

Lean hog futures firmed alongside the cash index, underpinned by tighter supplies of market-ready hogs.

CME February hogs added 0.675 cents to 82.950 cents a pound.

"We have some fairly significantly smaller hog supplies ahead, based on the inventory numbers," Houghton said.

The Lean Hog Index, a two-day weighted average of cash hog prices, firmed $1.12 cents to $73.87 a pound.

Daily hog slaughter of 465,000 head lagged year-ago rates by 29,000 head, the USDA said.

Thomas Reuters Foundation

© 2000 - 2023 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.