USA: Lean hog futures bounce back from steep losses

Published 2022년 10월 31일

Tridge summary

Lean hog futures on the Chicago Mercantile Exchange (CME) rebounded on Friday, recovering from significant losses the previous session, with December lean hog futures settling 0.975 cent higher at 86.100 cents per lb. This rebound was attributed to the contract's discount to the cash index following the near-limit-down close on Thursday. The recovery was also supported by an increase in pork belly prices, as reported by the US Department of Agriculture (USDA). However, the surge in pork belly prices might be temporary due to ample supplies. In contrast, live cattle futures experienced a second consecutive day of weakness, with December live cattle ending 0.425 cent lower at 153.00 cents per lb. CME's November and January feeder cattle futures also saw declines. Meatpackers reportedly slaughtered an estimated 124,000 cattle on Friday, marking an increase from recent weeks.

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Original content

Chicago Mercantile Exchange (CME) lean hog futures settled higher on Friday in a recovery from sharp losses recorded in the previous session, while live cattle futures weakened for a second consecutive day, reported Reuters. December lean hog futures ended up 0.975 cent at 86.100 cents per lb. The contract bounced after sinking by 3.375 cents on Thursday and touching its lowest price since October 18. "The only thing that supported the December contract today was the sharp discount to the cash index that resulted from the near limit-down close yesterday," said Dan Norcini, an independent livestock trader. A sharp increase in pork belly prices in a midday cutout report from the US Department of Agriculture (USDA) helped support stronger futures, Norcini said. The USDA quoted the US pork carcass cutout value at $101.34 per cwt, up by $2.88 from Thursday, while bellies climbed by $19.72 to $155.22. The surge in pork belly prices may not last due to ample supplies, though. The USDA ...

Source: Thepigsite