May 19, 2021

CME lean hog futures and live cattle futures up

Chicago Mercantile Exchange (CME) lean hog futures ended 1.8% higher on May 18, fuelled by a technical bounce following three straight days of decline, while cattle futures also closed higher as the market remained oversold, Reuters reported.

Rich Nelson, chief market strategist for Illinois-based broker Allendale, said they continue to monitor weekly swine slaughter rates.

Data from the United States Department of Agriculture (USDA) showed daily swine slaughter was at 478,000 head after hitting its lowest in six weeks on May 14.

CME June lean hog futures closed 2 cents higher at 110.65 cents per pound, with the contract breaking through resistant at its 20-day moving average.

Also according to USDA data, the pork cutout value declined from its one-year high of US$118.27 it reached in early May 18 to US$116.06 by the end of the day.

June live cattle futures on the CME was 1.4 cents higher to 116.75 cents per pound, as traders said the market remained oversold after falling 2.5% on May 13.

August feeder cattle was 0.825 cents lower to 151.925 cents per pound.

Traders said Argentina's recent announcement to stop meat exports for 30 days, which caused farm groups to halt livestock trading in protest, had little effect on futures prices.

- Reuters