Chicago | Reuters — Chicago Mercantile Exchange lean hog futures climbed on Wednesday, finding support as traders gauged pork demand and watched for signs of a seasonal influx of market-ready hogs.
“We still have an index that’s higher than the October. It usually doesn’t close the gap until we get into September a week or two,” said Scott Varilek, broker at Kooima Kooima Varilek Trading Inc. “I think we’ve got some supply coming to the fourth quarter that’s gonna give it a little negative tone.”
Most-active October lean hog futures gained 2.875 cents, to 83.6 cents/lb. (all figures US$).
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Wholesale pork carcass cutout eased 26 cents by midday, to $92.59/cwt.
Pork processors slaughtered 468,000 head, down 10,000 from the same period last year, the USDA said.
The CME’s Lean Hog Index, a two-day weighted average of cash prices, last eased to 93.89 cents/lb.
Meanwhile, CME live cattle futures slipped lower, though fundamentals remain supportive, Varilek said.
“I’m still a little long term friendly, due to tight supplies. We have not seen heifer retention yet,” he said, referring to producers keeping heifers from slaughter to breed more calves.
The most-active October live cattle dipped 1.425 cents, to 180.05 cents/lb., while October feeder cattle fell 1.525 cents, to 255.225 cents/lb.
Packers have not been aggressively courting producers for market-ready cattle, Varilek said, as the upcoming Labour Day holiday weekend will mean smaller slaughter numbers.
Beef packers slaughtered 125,000 head, down 2,000 head from the same period a year ago, the U.S. Department of Agriculture said.
Boxed beef prices were mixed, with choice cuts gaining 75 cents, to $315.11/cwt., while select cuts fell 15 cents, to $289.53/cwt, USDA said.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
