Chicago | Reuters — Chicago Mercantile Exchange lean hog futures neared a one-month high on Tuesday on expectations for increased U.S. pork exports and tightening supplies.
Demand for U.S. pork is benefiting as high pig prices in Europe cause global importers to shift some business to the United States, where pig prices have been weak, analysts said. Pig prices soared to records in Europe after farmers cut output due high grain and energy costs.
“The U.S. pork industry is literally stealing market share because of their high prices,” said Dennis Smith, commodity broker for Archer Financial Services in Chicago.
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Most-active October lean hog futures ended up 0.125 cent at 83.175 cents/lb. after touching its highest price since Aug. 8 at 84.725 cents (all figures US$).
The U.S. Department of Agriculture is slated to issue weekly export sales data on Friday, one day later than usual following the Labour Day holiday on Monday. Last week, the government reported that U.S. pork export sales in the week ended Aug. 24 were 36,900 metric tonnes for 2023, up 45 per cent from the prior four-week average.
“The exports are improving really nicely,” Smith said.
Brokers added that the U.S. herd is contracting at the same time amid increased slaughtering of sows.
USDA quoted the wholesale pork carcass cutout at $98.87/cwt, up $5.17, as values soared $18.06/cwt for pork bellies.
In the feeder cattle market, October futures fell to their lowest price since Aug. 25 and ended down 0.35 cent at 254.3 cents/lb. October live cattle eased 0.2 cent to 179.95 cents/lb.
Boxed beef prices were mixed, USDA said, with choice cuts rising 99 cents, to $315.48/cwt, and select cuts slipping 75 cents, to $289.54/cwt.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
