US hog futures close up - CME

Cattle futures rebound from multi-month lows
calendar icon 1 November 2023
clock icon 2 minute read

Chicago Mercantile Exchange (CME) livestock futures crept higher on Tuesday as the cattle markets continued to rebound from multi-month lows reached last week, reported Reuters.

Expectations for higher cash prices this week and beyond helped to underpin futures, analysts said. Cash prices improved on Friday, compared to the middle of last week.

CME October live cattle futures expired at 183.75 cents per pound, down 0.375 cent. That was the highest contract expiration ever for live cattle, according to AgMarket.Net and The Beef blog.

Cattle futures set record highs this year as the US herd dwindled to its lowest levels in decades.

December live cattle on Tuesday rose 0.300 cent to close at 183.550 cents per pound, after falling to June lows last week. The contract ended down 2.3% for the month after recent fund liquidation, traders said.

CME January feeder cattle closed up 0.325 cent at 237.200 cents per pound, after touching its lowest price since May on Friday. The contract lost a whopping 8% for the month.

Demand for US beef is expected to improve heading into the winter holiday season, analysts said. Tight cattle supplies are still squeezing beef processors, though.

Processors lost $16.40 for each head of cattle they slaughtered on Tuesday, compared to losses of $60.20 per head a week ago, said. Margins for pork processors improved to positive $24.75 per hog from $19.95 per hog a week ago.

In CME lean hog futures, the December contract closed up 0.550 cent at 71.725 cents per pound while staying within Monday's trading range. The contract slipped 0.1% for the month.

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