May 7, 2021
US swine and cattle futures up with domestic wholesale meat prices
Lean hog and live cattle futures on the Chicago Mercantile Exchange climbed as wholesale meat prices on the United States increased, Reuters reported.
The distribution of federal stimulus checks in the United States has resulted in increased demand for pork and beef in supermarkets and restaurants, according to analysts, who added COVID-19 vaccinations and restrictions being eased on businesses have prompted more people to eat out.
US Department of Agriculture (USDA) data showed boxed beef choice cutout values up US$1.59 to US$306.37 per cwt, while select cuts rose US$3.18 to US$289.36 per cwt.
The data also showed the cutout value for pork was up US$1.95 per cwt to US$113.86 per cwt.
Traders said lower average US swine weights are resulting in tighter pork supplies in the country during a time of strong sales. USDA data showed the average weight for swine in the week ended May 1 was 285.1 pounds (~129.3 kg), down one pound (~0.45 kg) from a week earlier and 6.3 pounds (~2.8 kg) a year ago.
Demand for exports remained strong. The USDA said export sales for pork reached 48,200 tonnes for 2021 delivery, up 36% from the previous week for the week ended April 29.
The USDA also said weekly export sales for beef was 16,900 tonnes for 2021, 28% lower compared to the previous week.
Most-active June lean hogs on the CME reached a contract high of 115 cents per pound and ended 0.050 cent at 114.475 cents per pound. For a fifth consecutive day, July hogs set a contract high and settled up 0.175 cents at 114.650 cents per pound.
June live cattle futures increased 1.050 cents to close at 115.475 cents per pound. The market has pulled back 8.1% from a contract high of 125.625 on April 8.
August feeder cattle futures dropped 1.825 cents to 143.400 cents per pound and is 11% lower compared to the contract high last month.