Chicago | Reuters — Chicago Mercantile Exchange lean hog futures gained on Monday, supported by fewer market-ready hogs and diminished pork supplies, analysts said.
“There just isn’t much extra pork laying around,” said Alan Brugler, president of Brugler Marketing.
CME April lean hogs settled 1.2 cents higher at 101.275 cents/lb., notching a new life-of-contract high.
Hog supplies have remained tight as producers are hesitant to increase their herds due to high feed costs.
The CME’s lean hog index a two-day weighted average of cash hog prices, firmed 97 cents, to $84.30/cwt.
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Meanwhile, hog slaughter rates perked up from last week, with 481,000 head processed.
Live cattle futures eased after strong gains last week, as weaker beef prices suggest softer demand, though cash prices remain strong.
“The packers will pay up if they have the beef market going,” said Brugler.
But if beef demand eases, cutting into packer margins, cash prices will likely follow lower, he said.
CME April live cattle ended down 0.475 cent at 146.4 cents/lb. March feeder cattle fell 1.075 cents to 165.025 cents/lb.
Boxed beef prices eased, with choice cuts falling 85 cents, to $278.96/cwt, and select cuts losing $1.01, to $275.04/cwt.
Cash cattle prices remained firm across the U.S. Great Plains at around $138-$140/cwt.
The cattle slaughter on Monday firmed to 121,000 head, up after weak processing the end of last week, USDA said.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
