Chicago | Reuters — Chicago Mercantile Exchange lean hog futures jumped to their highest price since April on Thursday on U.S. supply concerns and strength in outside markets, brokers said.
Live cattle reached a two-week high in the most-active contract, while feeder cattle futures slumped under pressure from soaring costs for grain used for livestock feed.
Gains in the stock market and reduced supplies of livestock helped support lean hogs and live cattle, brokers said. On Friday, they will review weekly U.S. export sales data for signals on pork and beef demand.
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Most-active August lean hogs rose 0.3 cents to end at 109.5 cents/lb. and touched their highest price since April 29 at 111.75 cents (all figures US$).
The U.S. Department of Agriculture reported the pork carcass cutout value at $112.19/cwt, up 69 cents from Wednesday.
In the cattle market, August live cattle futures settled up 0.05 cents at 134.55 cents/lb. August feeder cattle, meanwhile, dropped 0.825 cent to close at 172.475 cents/lb.
Prices for choice cuts of boxed beef were nearly flat at $268.07/cwt and select cuts dipped 35 cents, to $242.58/cwt, USDA said.
The agency said separately that meatpackers slaughtered an estimated 126,000 cattle on Thursday, up from 124,000 cattle a week ago, and 466,000 hogs, up from 463,000 hogs a week ago.
Profit margins for beef processors increased to $144.25 per head of cattle from $120.05 per head on Wednesday, HedgersEdge.com said. That was up from $125.75 per head a week ago.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
