Chicago | Reuters — CME lean hog futures firmed for a second session on Thursday, supported by bargain buying, though demand concerns capped gains, analysts said.
“We’ve got conflicting fundamentals. Seasonally, hog supplies should continue to tighten into mid-summer. But right now there’s a lot of demand worry,” said Doug Houghton, technical analyst at Brock Capital Management.
Benchmark June lean hogs added 1.975 cents, to 107.075 cents/lb. July hogs firmed 2.375 cents, to 109.425 cents/lb.
U.S. exporters sold 23,800 tonnes of pork during the week ended April 28, down 13 per cent from the prior four-week average, the U.S. Department of Agriculture said. Shipments of 32,200 tonnes were up eight per cent versus the previous four-week average.
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Hog slaughter remains strong, with 478,000 head slaughtered, in line with year-ago pace.
The CME’s lean hog index, a two-day weighted average of cash hog prices, fell 11 cents, to $101.04/cwt.
Meanwhile, live cattle futures fell, pressured by softer cash cattle and uncertain demand for beef amid inflationary pressures faced by U.S. consumers.
“The beef market should be rallying, seasonally, but it’s not really showing much life. I think there are still demand concerns,” said Houghton.
CME June live cattle futures lost 1.05 cents to settle at 133.775 cents/lb., while August feeder cattle fell 1.825 cents, to 174.375 cents/lb.
Cash cattle has eased slightly from last week, with northern Plains trade easing as much as $4, to $142/cwt, while cattle in the southern Plains traded around $140/cwt, unchanged from last week, according to the U.S. Department of Agriculture.
Wholesale boxed beef prices also trimmed lower, with choice cuts falling $4.56, to $255.18/cwt, while select cuts lost $1.87, to $245.81/cwt, USDA said.
Beef exports firmed 28 per cent versus the week prior, with exporters selling 14,600 tonnes of beef last week, USDA said. Shipments of 20,300 tonnes increased 16 per cent versus the week prior.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
