Chicago | Reuters — Chicago Mercantile Exchange live cattle futures set a contract high on Wednesday on firm cash prices and strong demand from packers, while lean hogs also set a new high, traders said.
April live cattle ended 1.65 cents higher at 147.825 cents/lb. and set a high of 147.925 cents (all figures US$). March feeder cattle closed up 1.4 cents at 168.275 cents/lb. after touching a five-week high of 168.85 cents.
Negotiated cash cattle trade was moderate in Kansas, the U.S. Department of Agriculture said, with live purchases trading steady to $1 higher compared to last week at $140 per hundredweight.
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Choice cuts of boxed beef fell by $1.67, to $275.79/cwt, while select cuts dropped by $1.79, to $272.05/cwt, USDA said.
In a separate monthly agricultural supply/demand report, USDA raised its outlook for U.S. fed cattle prices for the second half of the year because of firm demand from meatpackers.
Packers on Wednesday slaughtered an estimated 122,000 cattle, up from 121,000 cattle a week ago and 116,000 cattle a year ago, according to daily USDA data.
The agency, in its monthly report, also raised its U.S. hog price forecast, citing current higher prices and expectations for slower growth in production. The average price for barrows and gilts was pegged at $65/cwt, up from $60.50/cwt in January.
In hog futures, CME April lean hogs settled 0.975 cents higher at 104.775 cents/lb. and set a contract high of 105.475. Thinly traded February hogs slipped 0.1 cent to end at 90.225 cents/lb.
Processors slaughtered an estimated 472,000 hogs on Wednesday, compared to 432,000 hogs a week ago and 489,000 hogs a year ago, USDA said.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
