Chicago | Reuters — Chicago Mercantile Exchange (CME) cattle and hog futures rose on Thursday following broad strength in Wall Street equities, crude oil and other commodities, as investors’ risk appetite increased a day after the U.S. Federal Reserve kept benchmark interest rates on hold.
“The emphasis is really from the ‘risk-on’ macro play, driven by traders who think the Fed’s hawkish stance is coming to an end,” said Dan Norcini, an independent livestock trader.
CME December live cattle futures settled 1.05 cents higher at 184.675 cents/lb. and February ended 1.25 cents higher at 186.425 cents (all figures US$).
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
CME feeder cattle futures posted larger advances, with the January contract surging 4.15 cents to settle at 242.175 cents/lb. Declines in CBOT corn futures added support, signaling cheaper costs for feed.
Trade in the cash cattle market was quiet, traders said.
Wholesale beef prices were mixed. The U.S. Department of Agriculture (USDA) priced choice cuts on Thursday at $304.53 per hundredweight (cwt), up $2.35 from a day earlier, while select cuts tumbled $4.21, to $274.34/cwt.
CME lean hog futures rose along with cattle, with the benchmark December hog contract settling 3.125 cents higher at 73.275 cents/lb. The contract pushed through chart resistance at its 40- and 50-day moving averages on its way to a near four-week high at 73.375 cents.
“It was massive wave of short-covering in the hogs,” Norcini said, noting that managed commodity funds held a small net short position in hog futures as of Oct. 24.
Wholesale pork prices firmed, with USDA pricing the carcass cutout at $87.41/cwt, up 91 cents from the previous day.
USDA reported export sales of U.S. pork in the week to Oct. 26 at 31,100 metric tonnes, up 10 per cent from the previous week and up one per cent from the prior four-week average. Mexico and South Korea were the top buyers.
Weekly beef export sales totaled 17,100 tonnes, USDA reported, down two per cent from the previous week but up 71 per cent from the prior four-week average. China was the week’s top buyer.
— Julie Ingwersen is a Reuters commodities correspondent in Chicago.
