Lean hog futures ease - CME

Live cattle gain as heat impacts producers
calendar icon 28 August 2023
clock icon 2 minute read

Chicago Mercantile Exchange (CME) live cattle futures gained on Friday as processors looked to incentivise market-ready cattle movement while producers struggled against high temperatures on the US Plains, Reuters reported, citing analysts.

"We saw packers willing to pay up to keep stuff moving. With the hot weather, you had probably reduced performance and a little bit lighter weights coming in," said Matt Wiegand, risk management consultant at FuturesOne.

Most-active October live cattle gained 0.45 cents to 181.175 cents per pound, ending the week up 1.31%.

October feeder cattle lifted 0.725 cents to 253.975 cents per pound, adding 1.31% for the week.

Cash cattle eased, with northern plains cattle trading $3.00 lower at $185.00 per hundredweight (cwt), while the southern plains were steady at $178.00 to $179.00 per cwt, according to the US Department of Agriculture (USDA).

Weekly cattle slaughter was set to reach 626,000, down 7.67% from the same period a year ago, the USDA said.

Boxed beef prices lifted, with choice cuts lifting 27 cents to $317.90 per cwt., while select cuts added 76 to $292.67 per cwt.

Meanwhile, CME lean hog futures eased as seasonal pressured beat out producer concerns about expanding herds amid tightening profitability.

"Numbers will tick up seasonally, relatively speaking," said Wiegand. "But I would expect they would increasingly track below a year ago numbers as we get deeper into the fall, at least until we create a better margin situation."

The most-active October futures slid 0.650 cents to 79.825 cents per pound. For the week, October hogs fell 2.8%.

Wholesale pork carcass cutout sank $11.50 to $93.42 per cwt.

For the week, pork processors were set to slaughter 2.5 million head, up 3.65% year over year, the USDA said.

The CME's Lean Hog Index, a two-day weighted average of cash prices, last fell to 96.40 cents per pound.

© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.