August live cattle futures ease - CME
Lean hog futures hit highest price since April 4
1 August 2023
2 minute read
By: Chicago Mercantile Exchange (CME) hog futures climbed to nearly four-month highs on Monday, supported by strong demand, reported Reuters.
"Cash trade got off to a good start. There's margin out there with where fresh pork values are at. I think that’s helping to move things along," said Matthew Wiegand, risk management consultant at FuturesOne.
Most-active October lean hog futures added 0.975 cents to 86 cents per pound, hitting their highest price since April 4.
For the month, October lean hog futures added 9.73%.
Packer margins for pork climbed to $15.00 per head, up $2.05 from Friday, HedgersEdge.com said.
Processors slaughtered an estimated 476,000 hogs, up from 456,000 hogs a week ago and 412,000 hogs a year prior, according to the US Department of Agriculture.
The CME's Lean Hog Index, a two-day weighted average of cash prices, last traded at 105.81.
Cattle futures were pressured by softer cash prices and uncertain consumer demand.
Cash trade ended last week lower, easing $2 to $186.00 per cwt. in the northern US plains, while slipping $1 to 178 per cwt. in the southern plains.
CME August live cattle futures eased 0.100 cent to 178.050 cents per pound. Most-active October live cattle slipped 0.075 cent to settle at 179.525 cents per pound.
"Box beef tried to rally this morning, faded late. Poor volume, so you’re still not seeing great clearance there," said Wiegand.
Boxed beef prices were mixed on the day, with choice cuts falling 22 cents to $301.78 per cwt., while select cuts added 19 cents to $277.73 per cwt.
August feeder cattle futures ended unchanged at 245.600 cents per pound. Weakness in corn futures helped support feeders by signaling lower costs for feed, traders said.
