US hog futures recover after hitting six-month low as cattle prices advance
Cattle futures gained support from firm cash market prices and steady beef demand.
USA – Chicago Mercantile Exchange (CME) livestock futures ended higher on Wednesday, with lean hog contracts recovering from recent losses while cattle futures drew support from strong cash market conditions and firm beef prices.
Live cattle futures closed modestly higher in relatively narrow trading ranges as traders continued to monitor developments in the cash cattle market and wholesale beef values.
Cash cattle transactions last week were largely reported between US$256 and US$258 per hundredweight, and market participants expected prices to remain stable or move slightly higher during the current week, although little cash trade activity had emerged by Wednesday.
The gap between cash cattle prices and futures values continued to support the market, with nearby futures contracts trading below prevailing cash levels.
June live cattle futures gained 2.075 cents to settle at 250.100 cents per pound, while the actively traded August contract rose 1.800 cents to close at 241.500 cents per pound.
Meanwhile, August feeder cattle futures edged higher by 0.225 cent to finish the session at 354.375 cents per pound.
Traders also remained focused on the spread of the New World screwworm parasite after the first domestic case in decades was identified in a calf in Texas last week.
The US Department of Agriculture reported that seven cases of screwworm infestation had been confirmed in the United States as of Wednesday.
Although the parasite does not affect meat quality, market participants are assessing whether a broader outbreak could influence consumer purchasing patterns and beef demand.
USDA data showed choice beef cutout values reached US$393.28 per hundredweight on Wednesday afternoon, up US$0.38 from the previous day but below the recent peak of US$395.86 recorded last week.
In the hog market, lean hog futures moved higher after the benchmark July contract recovered from its weakest level since late November.
July lean hog futures settled 0.700 cent higher at 96.850 cents per pound after falling earlier in the session to 95.500 cents per pound.
USDA figures indicated that pork carcass values ended Wednesday at US$95.96 per hundredweight, unchanged from the previous trading day.
The recovery in hog futures followed recent pressure on the market, while gains in cattle contracts reflected continued confidence in cash prices and underlying demand across the US beef sector.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
