U.S. livestock: Cattle, hog futures rise on robust beef, pork demand

Chicago | Reuters — Chicago Mercantile Exchange hog and cattle futures rose on Friday, with strong consumer demand for pork and beef pushing prices higher, traders said.

Live cattle received a boost from concerns about tight supplies.

“The big thing on the cattle is that the beef market seasonally found some really good strength,” said Don Roose, president of U.S. Commodities in West Des Moines, Iowa. “On the supply side, these numbers continue to tighten on the live cattle. It is the tighter numbers and the high beef prices that pulls us up.”

After the close, the U.S. Department of Agriculture said that the amount of cattle on feed as of Oct. 1 was 99 per cent of the year-ago total. That was slightly lower than market expectations for 99.1 per cent.

Placements during September were 96 per cent of the September 2021 placements. Analysts were expecting the report to show placements at 96.4 per cent.

Marketings were 104 per cent of the year-earlier total, matching expectations.

CME December live cattle rose 0.75 cent to 152.425 cents/lb., hitting a new contract high of 152.5 cents during the session (all figures US$).

Spot October live cattle contract gained 0.7 cent to 150.475 cents/lb., just off its session high of 150.5 cents.

The daily peak was the highest on a continuous basis for the front-month contract since Aug. 10, 2015.

CME November feeder cattle ended 0.8 cent higher at 178.35 cents/lb.

CME December lean hog futures rose 2.1 cents to settle at 89.125 cents/lb.

Cash market strength underpinned the hog futures market, Roose said.

— Mark Weinraub is a Reuters commodities correspondent in Chicago.