Glacier FarmMedia COVID-19 & the Farm

U.S. livestock: Cash, pork prices send CME hogs higher

Live cattle reverse Monday's losses, feeder cattle finish sharply higher

pork chop
A bacon-wrapped pork chop. (

Chicago | Reuters — Chicago Mercantile Exchange lean hog futures gained for a second day in a row on Tuesday, strengthened by upward-trending prices for market-ready, or cash, hogs and the morning’s firmer wholesale pork values, said traders.

They said October futures led advances after investors actively bought that contract and simultaneously sold deferred months, they said.

October hogs, which will expire on Oct. 13, ended 2.625 cents/lb. higher at 59.875 cents, and above the 20-day moving average at 58.730 cents. Most actively traded December finished up 0.1 cent to 62.075 cents.

Some packers bought hogs to round out inventories heading into the second half of the week, while a few others raised cash bids to divert Midwest farmers’ focus from harvesting crops, traders and analysts said.

The cash market tends to find some strength when farmers conduct fieldwork during the spring and fall, said Midwest Marketing Solutions analyst Brian Hoops.

“There has been a lot of producers, up until this rain event, that have been very busy trying to combine corn and soybeans,” he said.

Wholesale pork values garnered periodic support from grocers that are featuring product during National Pork Month in October.

Live cattle rally

Short-covering, sparked by Tuesday morning’s higher wholesale beef values, rallied CME live cattle from Monday’s lows, said traders.

They said fund buying furthered market advances, despite possibly steady-to-lower cash prices this week.

October live cattle finished 1.275 cents/lb. higher at 109.1 cents, and above the 200-day moving average of 108.932 cents. December closed 1.475 cents higher at 114.9 cents, and over the 100-day moving average of 114.552 cents.

Market participants await Wednesday’s Fed Cattle Exchange (FCE) sale of more than 1,700 animals to set the pace for this week’s cash cattle prices. The FCE reported no sales last week.

A week ago, most of the cash cattle in the U.S. Plains brought $108/cwt.

Market bulls cited extremely profitable margins and the uptick in wholesale beef prices as incentives for packers to pay up for supplies this week.

Contrarians point to 15,000 more cattle for sale than last week and availability of animals contracted against the futures market for potential cash price pressure.

Feeder cattle futures at the exchange snapped back from Monday’s selloff helped by short-covering, fund buying and live cattle futures’ turnaround.

October ended 2.075 cents/lb. higher at 152.425 cents.

— Theopolis Waters reports on livestock markets for Reuters from Chicago.

Tagged , , , , , , , , , ,
COPA Medallion COPA finalist in 2012, 2014 and 2015.
©2021 AGCanada is a production of Glacier FarmMedia Limited Partnership. Any affiliated or third party content is the property of its respective owner and is used with permission.
Please refer to Copyright Page for details.
Click here to view our Website Terms of Use.