Chicago | Reuters — U.S. live cattle and lean hog futures advanced on Monday on expectations that cash prices will remain firm, analysts said.
Cash cattle prices are expected to rise $1-$2/cwt this week as packers ramp up slaughtering, said Brian Hoops, president of broker Midwest Market Solutions (all figures US$). Fat cattle last week traded in the U.S. Plains at $107/cwt, up about $2 from the previous week.
Meatpackers slaughtered an estimated 119,000 cattle on Monday, up from 118,000 a week ago and 118,000 a year earlier, according to the U.S. Department of Agriculture.
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“They’re going to have to pay up for the cash markets,” Hoops said.
Chicago Mercantile Exchange October live cattle rose 0.65 cent to 108.825 cents/lb. and most-active December ended up 0.65 cent at 111.75 cents.
CME November feeder cattle edged up 0.05 cent to 139.925 cents/lb.
CME October lean hogs settled up 0.25 cent at 74.75 cents/lb., while most-active December hogs rose 0.15 cent to 62.65 cents.
The CME’s lean hog index, a two-day weighted average of cash markets, increased to $76.81/cwt, it highest since August 2019 and up from $76.74 on Friday. The U.S. pork cutout, an indication of wholesale pork prices, was $2.85 higher at $95/cwt.
“We’re looking at cash markets for direction this week,” Hoops said.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
