LIVESTOCK-CME lean hogs firm on tight hog supplies

HomeStock

LIVESTOCK-CME lean hogs firm on tight hog supplies

By Christopher Walljasper

CHICAGO, Feb 7 (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 LHJ2 settled 1.200 cents higher at 101.275 cents per pound, 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 .IHX a two-day weighted average of cash hog prices, firmed 97 cents to $84.30 per cwt.

Meanwhile, hog slaughter rates perked up from last week, with 481,000 head processed.LIV/KILL

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 LCJ2 ended down 0.475 cent at 146.400 cents per pound. March feeder cattle FCH2 fell 1.075 cents to 165.025 cents per pound.

Boxed Beef prices eased, with choice cuts falling 85 cents to $278.96 per cwt and select cuts losing $1.01 to $275.04 per cwt.

Cash cattle prices remained firm across the U.S. Great Plains at around $138 to $140 per cwt.

The cattle slaughter on Monday firmed to 121,000 head, up after weak processing the end of last week, the USDA said.

(Reporting by Christopher Walljasper; Editing by Krishna Chandra Eluri)

(([email protected]; 1 630 269 3072; Reuters Messaging: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

www.nasdaq.com