Chicago | Reuters — Chicago Mercantile Exchange lean hog futures touched a four-week high on Thursday on technical buying and concerns about tightening supplies, analysts said.
Demand from pork processors helped underpin futures as packers’ profit margins improved, a broker said. Margins were estimated to be $2.45 per hog, up from a loss of $4.15 per hog a week ago, according to livestock marketing advisory service HedgersEdge.com (all figures US$).
CME October lean hogs closed 1.35 cents higher at 96.05 cents/lb. Most-active December hogs ended up 2.35 cents to end at 87.65 cents/lb. The contract earlier rose to 88.25 cents, its highest price since Aug. 17.
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The market has rebounded since falling to a two-month low on Sept. 8.
Live cattle futures also strengthened at the CME, with the October contract advancing 1.275 cents to 145.625 cents/lb. December live cattle closed up 1.275 cents at 151.325 cents/lb. and touched its highest price since Aug. 17 at 151.65 cents.
CME feeder cattle futures, meanwhile, finished weaker. October feeders eased 0.5 cent to close at 180.925 cents/lb.
Prices for choice cuts of boxed beef shipped to wholesale buyers fell by $1.13, to $252.34/cwt, while select cuts slipped by 16 cents, to $229.95/cwt, the U.S. Department of Agriculture said.
“While boxed beef has struggled, we’ve seen pretty strong volumes,” a commodity broker said.
Analysts said warnings about a global recession remained a concern for livestock markets, as an economic slowdown would reduce demand for high-priced beef.
In Europe, the biggest pork producer, Danish Crown, said it would cut 350 jobs at two factories in Denmark as a result of declining supplies from farmers hit by rising energy and feed prices.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
