TheCattleSite.com - news, features, articles and disease information for the cattle industry

News

CME live cattle futures advance

22 December 2021

Hog futures rise on smaller US herd estimates

Chicago Mercantile Exchange hog futures rallied on Tuesday amid expectations the US Department of Agriculture (USDA) will confirm a smaller pig herd in a report due out on Thursday, analysts said.

The USDA, in its quarterly Hogs and Pigs report, is expected to show the herd was about 2.9% smaller on 1 December compared to a year earlier, a Reuters survey of analysts showed.

Most-active February lean hog futures settled up 2.950 cents at 82.425 cents per pound and set their highest price since Nov. 25 at 82.775 cents. April hogs climbed 2.075 cents to close at 85.575 cents and reached their highest price since 14 December at 85.775 cents.

An improved appetite for risk among investors helped support markets after US stocks and commodities including crude oil and livestock futures fell on Monday on concerns about rising coronavirus cases, analysts said. Wall Street closed significantly higher on Tuesday, while oil prices gained as investors sought riskier assets.

CME live cattle futures also advanced, with the February contract touching its highest price since 15 December before settling up 0.950 cent at 136.925 cents per pound. CME March feeder cattle jumped 1.325 cents to close at 161.825 cents.

Wholesale boxed beef prices slumped, with choice cuts down $0.99 at $261.39 per cwt and select cuts down $0.75 at $249.92, according to daily USDA data.

The agency on Thursday will issue a monthly Cattle on Feed report that is expected to show the United States on 1 December had the same number of cattle on feed for the slaughter market as a year earlier, according to a Reuters survey of analysts. They estimated that cattle placements and marketings in November were up from a year ago.

In another report, the USDA on Wednesday is set to issue monthly data on the amount of frozen meat held in cold storage facilities.

Source: Reuters



Partners


Seasonal Picks