Chicago | Reuters — U.S. lean hog futures extended their rally on Friday, setting a contract high for the fourth consecutive day on strong demand, while live cattle futures topped a one-year high.
Traders predicted Chinese buyers will continue to snap up U.S. pork after the U.S. Department of Agriculture on Thursday reported export sales to China last week hit a three-month high.
China, the world’s top pork consumer, increased meat imports after a fatal pig virus, African swine fever, began devastating its herd starting in August 2018. The country is attempting to rebuild the herd, but still grappling with disease.
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U.S. exports of pork and pork products to China surged 75 per cent in 2020 to a record $2.28 billion, USDA data showed (all figures US$).
Domestic demand for meat has also been solid as more U.S. restaurants are re-opening after COVID-19 restrictions, traders said.
Chicago Mercantile Exchange (CME) April lean hog futures closed up one cent at 80.3 cents/lb. The contract traded up to 80.625 cents, exceeding Thursday’s life-of-contract high of 80.075 cents.
CME April live cattle closed 0.025 cent higher, to 123.775 cents/lb., and reached its highest price since Jan. 15, 2020, at 124.25 cents.
March feeder cattle slid 1.225 cents to close at 138.275 cents/lb., extending a retreat since hitting a five-month high of 144.85 on Jan. 25.
Prices for choice cuts of boxed beef edged up 33 cents, to $234.58/cwt, on Friday, while select cut prices rose 35 cents, to $220.79/cwt, according to USDA.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
