Chicago | Reuters — Chicago Mercantile Exchange lean hog futures settled narrowly mixed Friday on positioning prior to the U.S. Department of Agriculture’s quarterly hog report at 2 p.m. CT, traders said.
Analysts expect Friday’s report to confirm active herd expansion during the last quarter.
April and May closed up 0.15 cent per pound, to 61.125 cents and 68.175 cents, respectively (all figures US$). June ended down 0.15 cent, to 75 cents and July off 0.075 cent at 75.775 cents.
Uneasiness about near-term market-ready (cash) prices, and the morning’s wholesale pork value relapse, weighed on CME hog contracts, said traders and analysts.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
On Friday morning, cash hog prices in the Midwest region traded mostly steady with Thursday’s sales, said regional hog dealers.
The morning’s wholesale pork price slumped $1.17 per hundredweight (cwt) from Thursday to $66.08, USDA said.
Some packers bought hogs for early next week, while others are snug on inventories through the coming Good Friday/Easter holiday weekend, a trader said.
Retailers are not aggressively buying large amounts of pork given ample supplies to accommodate early spring grilling demand, he said.
Live cattle rise
CME live cattle settled higher on short-covering in anticipation of steady-or-better cash prices for this week, traders said.
April closed 0.95 cent/lb. higher at 162.625 cents, and June up 0.975 cent to 152.975 cents.
Cash cattle bids in the U.S. Plains were at $160-$162/cwt against $166-$167 asking prices, industry sources said. Last week, cash cattle moved at $163-$165.
Packers still need cattle despite unprofitable margins, softer wholesale beef values and Easter holiday kill reductions, said Oak Investment Group president Joe Ocrant.
Friday morning’s choice wholesale beef price dipped 24 cents/cwt from Thursday at $250.43. Select cuts was down 34 cents to $246.62, USDA said.
The day’s beef packer margins were a negative $42.90 per head, compared with a negative $25.50 on Thursday and a negative $47 per head a week ago, according to HedgersEdge.com.
Thinly traded CME feeder cattle futures ended sharply higher on buy stops and live cattle market advances.
April closed 2.05 cents/lb. higher at 219.275 cents, and May up 2.35 cents to 218.125 cents.
— Theopolis Waters reports on livestock futures markets for Reuters from Chicago.
