April 7, 2021
Lean hog futures on the Chicago Mercantile Exchange (CME) rose with record highs for several contract months including the benchmark June thanks to firm cash markets and increased pork demand, while CME live cattle futures closed lower, Reuters reported.
CME lean hog futures ended at 106.325 cents per pound, 1.025 cents higher after reaching a record 106.725 cents.
Futures were supported by surging cash hog prices. The lean hog index on the CME increased to US$98.50 per cwt, the highest since October 2014. The index is a two-day weighted average of cash prices.
US Department of Agriculture (USDA) data showed US pork export sales in the week to March 25 was 61,000 tonnes, with China booked 29,700 tonnes and shipping 11,900 tonnes. This was a marketing year peak.
Pork and beef demand in the US remained strong, with renewed demand from the food service industry as the US economy is projected to rebound following the COVID-19 pandemic.
CME live cattle futures closed lower however, as traders look to book profits ahead of the Easter weekend. CME June live cattle closed at 122.550 cents per pound, down 0.350 cent. May feeder cattle futures ended 149.225 cents, down 0.175 cent.
Traders said cash cattle traded between US$116 to US$118 per cwt, a US$2 increase.