USA: Lean hog futures bounce back from steep losses

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 ...