April 20, 2021

CME live cattle futures continue to fall, lean hogs bounce back

Chicago Mercantile Exchange (CME) live cattle futures fell to its eighth straight session due to long liquidation and signs that rising wholesale beef prices have reached its peak, while lean hog futures are on the rise, Reuters reported.

Feeder cattle futures were also affected by an increase in Chicago Board of Trade corn futures, which indicates surging feed costs.

June live cattle futures on the CME ended 0.575 cent at 118.600 cents per pound, while August feeder cattle futures dropped 1.775 cents to close at 152.775 cents per pound.

The CME June live cattle contract has been on the decline after reaching a life-of-contract high on April 8, due to increasing beef prices thanks to the summer grilling season in the United States and a positive outlook on the US economy.

But the US Department of Agriculture (USDA) reported declining wholesale prices for beef choice cuts, with the reading rising US$0.12 to US$276.17 per cwt based on government data

The CME Juen lean hog futures increased 2.625 cents to end at 104.325 cents per pound. The contract bounced back after dropped 6.6% last week to its lowest since March 23.

The market was supported by strong cash hog prices and firming wholesale pork prices. The US pork cutout increased US$1.99 to US$114.08 per cwt. The US pork cutout is an indication of wholesale pork prices.

- Reuters