Chicago | Reuters — Profit-taking weighed on Chicago Mercantile Exchange lean hog futures on Tuesday after prices leapt to their highest price this month, traders said.
Most-active June lean hogs settled down 1.075 cents at 121.325 cents/lb. (all figures US$). The contract is up eight per cent since nearing a one-month low on April 5 and 24 per cent this year.
U.S. pork cutout values also weakened. Carcasses were priced at $107.12/cwt, down $2.37 from Monday, while pork belly values sank by $11.46, to $182.26/cwt, the U.S. Department of Agriculture said.
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Weaker cutout values could temper retail pork prices as consumers prepare for the summer grilling season, analysts said.
U.S. pork producers are hoping for strong domestic sales amid flagging demand to China, the world’s top pork consumer. China has boosted its pork production after an outbreak of African swine fever devasted Chinese herds starting in 2018.
China’s pork imports from all sources fell by 64 per cent in the first three months of 2022, compared to the same period last year, to 420,000 tonnes, according to the country’s General Administration of Customs.
China will buy 40,000 tonnes of frozen pork for its state reserves on Friday in its fifth batch of such stockpiling this year, the China Merchandise Reserve Management Center said.
China will also auction 3,000 tonnes of frozen beef and mutton from its state reserves on Thursday, the centre said.
In U.S. beef markets, CME June live cattle futures rose 0.775 cent, to 136.575 cents/lb. May feeder cattle futures jumped 1.625 cents, to 160.775 cents/lb.
Boxed beef prices fell by 1.15 cents for choice cuts, to $269.93, and slipped by 25 cents, to $259.21/cwt, for select cuts, USDA said.
USDA on Friday will issue a monthly Cattle on Feed report that is expected to show placements in March fell 7.8 per cent from a year earlier and marketings dropped 1.8 per cent, according to a Reuters survey of analysts.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
