Chicago | Reuters — Chicago Mercantile Exchange nearby lean hog futures ended higher on Thursday, as wholesale pork prices rose, cash hog prices firmed and traders awaited quarterly hog data from the U.S. Department of Agriculture (USDA).
Benchmark August hogs settled up 1.225 cents at 92.325 cents/lb. after reaching 93 cents, right at the contract’s 100-day moving average (all figures US$). Back months edged lower, with the October contract ending down 0.025 cent at 79.35 cents.
In the pork market, USDA priced the carcass cutout at $102.90 per hundredweight (cwt), up $3.82 from Wednesday and the highest in eight months, lifted by a nearly $19/cwt jump in pork belly prices.
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The CME lean hog index, a two-day weighted average of cash hog prices, rose by 44 cents to $92.96/cwt, its highest since Nov. 1.
After the close, USDA reported the U.S. hog herd as of June 1 at 72.394 million head, a 0.1 per cent increase from a year earlier, bucking trade expectations for a reduction. Analysts surveyed by Reuters on average had estimated the hog herd at 71.808 million head, down 0.7 per cent from a year ago.
“The report overall… is a bit negative in that it shows more hogs than the consensus,” said Dan Norcini, an independent livestock trader.
In the cattle market, CME live cattle futures rose for a third straight session on a bullish fundamental outlook, with tightening U.S. cattle supplies underpinning cash cattle prices.
CME August live cattle futures settled up 0.625 cent at 174.5 cents/lb. and October futures ended up 0.65 cent at 177.675 cents.
CME August feeders settled up 2.125 cents at 242.375 cents/lb. after setting a three-week high at 242.75, supported by sliding prices for corn that signaled cheaper feed costs.
— Julie Ingwersen is a Reuters commodities correspondent in Chicago.
