Chicago | Reuters — CME cattle and hog futures rose on Wednesday, supported by concerns about near-term supplies, traders said.
Analysts were expecting a U.S. Agriculture Department report on Friday to show that the number of cattle on feed as of July 1 was 99 per cent of the year-earlier amount. Placements during June were seen at 95.9 per cent of the June 2020 total and marketings 102.1 per cent of a year ago.
CME August lean hog futures gained 1.575 cents to 106.575 cents/lb., while October firmed 1.375 cents to 92.4 cents (all figures US$).
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
The October hogs contract hit a five-week peak but faced resistance at the high end of its 20-day Bollinger range.
Daily hog slaughter held steady at 474,000 head on Wednesday, USDA said, matching the nearly four-week high hit on Tuesday.
CME’s most-active October live cattle futures rose 0.55 cent to 125.25 cents/lb., while nearby August futures gained 0.275 cent to 120.05 cents.
CME August feeder cattle finished 1.25 cents higher at 156.775 cents/lb.
Boxed beef prices were mostly lower, with choice cuts rising 36 cents, to $265.24/cwt, and select cuts adding 19 cents, to $248.77/cwt, USDA said.
— Reporting for Reuters by Mark Weinraub in Chicago.
