Live cattle futures close mostly higher - CME

Lean hog futures up 2%
calendar icon 16 May 2023
clock icon 2 minute read

Lean hog futures on the Chicago Mercantile Exchange (CME) rose more than 2% on Monday on signs of firming cash hog values, rising wholesale pork prices and short-covering, reported Reuters.

CME June lean hog futures settled up 2.050 cents at 86.150 cents per pound, with the July contract up 2.175 cents at 87.500 cents.

The CME lean hog index, a two-day weighted average of cash hog prices, rose by 51 cents to $75.91 per hundredweight (cwt). For pork, the USDA priced the carcass cutout late Monday was at $84.38 per cwt, up 97 cents from Friday and the highest since March 16.

Commodity funds expanded their net short position in CME lean hog futures in the week to May 9, data from the US Commodity Futures Trading Commission showed on Friday, leaving the market prone to bouts of short-covering.

CME live cattle futures closed mostly higher, with the most-active August contract settling up 0.300 cent at 162.750 cents per pound. But front-month June cattle ended down 0.075 cent at 164.325 cents.

CME August feeder cattle settled up 2.075 cents at 231.050 cents per pound.

The CFTC's data on Friday showed that commodity funds cut their net long position in CME live cattle futures by 12,134 contracts in the week to May 9, to a net long of 94,010 contracts. Fund-driven long liquidation appeared to have slowed since then, analysts said.

In the wholesale beef market, the USDA priced choice cuts of beef at $301.98 per cwt, down $2.63 from Friday, while select cuts rose 3 cents to $284.41 per cwt.

On the global front, Brazil, the world's top chicken exporter, for the first time confirmed Highly Pathogenic Avian Influenza (HPAI). Two cases were detected in wild birds and should not trigger a ban on imports of Brazilian poultry products, according to the Brazilian government.

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