Cattle futures maintain regular
15 January 2025
2 minute learn
Chicago Mercantile Change (CME) lean hog futures rose on Tuesday with the entrance two contracts posting multi-week highs, supported by bettering wholesale costs for pork, Reuters reported, citing merchants.
CME February lean hogs settled up 0.450 cent at 83.625 cents per pound after reaching 83.875 cents, the contract’s highest since Dec. 30. April hogs ended up 1.200 cents at 90.500 cents after hitting 90.625 cents, their highest level since Dec. 23.
Hog futures acquired a lift because the US Division of Agriculture (USDA) priced carcasses on Tuesday morning at $92.23 per hundredweight (cwt), up $2.03 from Monday. Nonetheless, the federal government’s up to date closing cutout value, launched after Tuesday’s CME shut, was $90.21, up solely a penny from Monday.
Nonetheless, pork cutout values have stabilized since dipping to an 11-month low final week at $87.83 per cwt.
“We noticed the cutout pull again, and now it has type of discovered some stability. And futures have accomplished the identical,” mentioned Altin Kalo, chief economist at Steiner Consulting Group, including, “it has given the market just a little bit extra confidence.”
CME stay cattle futures had been flat on Tuesday, consolidating after a pointy two-week rally lifted some contracts to life-of-contract highs by Friday. Tight provides of market-ready cattle and strong beef costs proceed to assist futures.
“We have hit the pause button right here and we’ll see the place the money (cattle) commerce develops this week,” Kalo mentioned.
February stay cattle futures settled unchanged at 197.400 cents per pound, whereas April stay cattle fell 0.050 cent to complete at 198.150 cents.
CME March feeder cattle rose 0.300 cent to finish at 268.200 cents a pound, supported by a setback in costs for corn Cv1, a key feed grain.
Boxed beef values eased barely on Tuesday afternoon however remained unseasonably excessive for mid-winter, sometimes a time of sluggish demand. The USDA priced selection cuts of beef at $332.98 per cwt, down 37 cents from Monday’s 19-month peak of $333.35.
“That’s type of the cutout worth that you’d count on going into the (summer season) grilling season. (Merchants) wish to see how the market goes to soak up a few of these excessive costs,” Kalo mentioned.
