Hog futures fall on rising supply - CME

Cattle futures under pressure from robust supply
calendar icon 25 May 2022
clock icon 2 minute read

Chicago Mercantile Exchange (CME) Group hog futures eased on Tuesday, pressured by a government report released after the close on Monday that showed supplies of pork at their highest in two years, reported Reuters.

The US Department of Agriculture (USDA) on Monday afternoon said that frozen stocks of pork stood at 530.244 million lbs as of April 30, up 16% from a year earlier. The monthly total compares to pork stocks of 485.929 million lbs at the end of March.

Cattle futures also were under pressure from robust supplies, with frozen beef stocks of 531.728 million lbs, representing an 18.5% gain from a year earlier.

The nearby June hogs contract dropped 1.35 cents to 109.025 cents per pound, while July futures fell 1.8 cents to 109.05 cents per pound.

China will buy 5,000 tonnes of local frozen pork for its state reserves on 26 May, according to a notice on the website of the reserves management centre, as part of its plan to support domestic prices.

Cattle futures also were weak, with CME June live cattle futures dipping 0.05 cent to 132.725 cents per pound, while the most-active August live cattle eased 0.225 cents to 132.75 cents per pound.

CME August feeder cattle rose 2.525 cents to 168.15 cents per pound.

Prices for choice cuts of boxed beef were reported at $263.65 per cwt on Tuesday afternoon, down 63 cents from Monday afternoon, while select cuts rose to $245.35 from $244.23 per cwt, according to USDA data.

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