Hog futures hit highest level since April 22 - CME

Cattle future unchanged
calendar icon 27 May 2022
clock icon 2 minute read

Chicago Mercantile Exchange (CME) Group hog futures rose to their highest level in more than a month on Thursday, supported by strong exports and concerns about a slowing slaughter, reported Reuters, citing traders.

Cattle futures ended the trading day close to unchanged.

The US Department of Agriculture (USDA) on Thursday morning said that export sales of pork totalled 36,800 tonnes in the week ended 19 May, up 52% from a week earlier.

Traders said that demand could pick up further as China looks to end some COVID-19 lockdowns.

At the same time, supplies could be tighter as the slaughter has slowed ahead of the US Memorial Day holiday.

The nearby June hogs contract rose 2.05 cents to 111.1 cents per pound. The contract peaked at 111.6 cents, the highest on a continuous basis for the front-month contract since 22 April.

Most-active July hog futures gained 3.875 cents to 111.825 cents per pound.

June hogs rose above their 40-day moving average, while the July contract topped its 30-day and 100-day moving averages.

Hog slaughter so far this week has totalled 1.884 million head, down 15,000 from a week earlier and 47,000 head lower than a year ago.

CME June live cattle edged up 0.1 cent to settle at 132.4 cents per pound, while the most-active August live cattle gained 0.075 cent to 132.6 cents per pound.

CME August feeder cattle fell 1.275 cents to 167.95 cents per pound.

Beef export sales fell to 20,000 tonnes from 23,300 tonnes.

Prices for choice cuts of boxed beef were reported at $263.97 per cwt on Thursday afternoon, up $1.04 from a day earlier, while select cuts rose to $244.43 from $244.06 per cwt, according to USDA data.

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