August hog markets ease - CME
Live cattle firms on strong cash market
2 August 2023
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle futures gained on Tuesday, helped by strong cash prices and technical support, Reuters reported, citing analysts.
"Cash market is still hanging in there at $179 to $180 area. More than that in the north. So August was too big of a discount," said Alan Brugler, president of Brugler marketing. "If cash isn't going to go down, we've gotta go up."
CME August live cattle futures added 1.45 cents to 179.500 cents per pound. Most-active October live cattle gained 2.300 cents to settle at 181.825 cents per pound, the biggest daily gain since July 14.
Boxed beef prices firmed, with choice cuts adding $4.32 to $306.10 per cwt., while select cuts gained $1.87 to $279.60 per cwt., according to the US Department of Agriculture (USDA).
Processors slaughtered an estimated 124,000 cattle, down slightly from 125,000 head a year prior, according to the USDA.
August feeder cattle futures lifted 2.875 cents to 248.425 cents per pound.
"Today was just the ideal combination of higher fat cattle and lower feed costs. You're going to bid that into the feeders," said Brugler.
CME lean hog futures eased after reaching fresh four-month highs, though demand and cash prices provided support.
"They're still in a steep uptrend," Brugler said. "Technically there's not much resistance."
Nearby August lean hog futures eased 0.450 cents to 103.675 cents per pound, while the most-active October contract lost 0.350 cents to 85.650 cents per pound.
Packer margins for pork climbed $4.75 to $19.75 per head, according to HedgersEdge.com.
Processors slaughtered an estimated 476,000 hogs, up from 472,000 hogs a year prior, according to the USDA.
The CME's Lean Hog Index, a two-day weighted average of cash prices, climbed to 106.00 per cwt., its highest since September 1, 2022.
