US hog futures rally to nine-month high - CME

Cattle contracts ease
calendar icon 21 June 2023
clock icon 2 minute read

Chicago Mercantile Exchange (CME) hog futures rose to a nine-month high as a recent slowdown in the pace of slaughter limited the amount of retail supplies, reported Reuters.

Cattle futures were weaker on an expected seasonal slowdown and a round of profit-taking, traders said.

CME July hogs jumped 3 cents to 95.85 cents per pound while August hogs ended up 2.525 cents at 93.2 cents a pound. On a continuous basis, the front-month contract hit its highest since Sept. 21, 2022.

The USDA priced the pork carcass cutout at $94.62 per cwt on Tuesday afternoon, up from $92.33 on Friday.

CME's benchmark August live cattle contract settled down 2.025 cents at 169.7 cents per pound.

The US Department of Agriculture priced choice cuts of beef at $336.91 per hundredweight (cwt) on Tuesday afternoon, down $3.23 from the nearly two-year high hit on Friday. Select cuts were $2.83 lower at $307.93 per cwt.

Analysts expect that beef prices will ease as retailers finish stocking meat cases ahead of the Fourth of July holiday, the last big grilling holiday until Labour Day in September.

Profit margins for meat packers rose on Tuesday to $182.55 per head of cattle, up from $166.65 on Friday and $147.80 a week ago, according to livestock marketing advisory service HedgersEdge.

CME feeder cattle futures also were weaker, with the August contract ending down 2.775 cents at 232.15 cents per pound.

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