US hog markets end firm - CME
Cattle futures climb on beef demand optimism
24 September 2024
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle futures rose on Monday on rising beef prices and optimism that the U.S. economy was strong enough to support continued consumer demand for meat, Reuters reported, citing traders.
October live cattle settled up 0.775 cent at 183.250 cents per pound after reaching 183.650 cents, the contract's highest since Aug. 2. December live cattle rose 0.625 cent to settle at 183.825 cents. CME October feeder cattle futures finished up 0.575 cent at 244.475 cents per pound.
Wall Street equity markets firmed as Federal Reserve policymakers said last week's large interest rate cut was warranted. Livestock traders took that strength as a positive signal for consumers' willingness to pay for pricey cuts of beef.
"The market is reducing its concern about a recession-based hit on beef demand," said Rich Nelson, chief strategist at Allendale Inc.
The US Department of Agriculture (USDA) priced choice cuts of boxed beef on Monday afternoon at $301.81 per hundredweight (cwt), up $1.62 from Friday. Select cuts fell to $287.79 per cwt, down 80 cents.
Friday's monthly USDA Cattle on Feed report was seen as neutral. The government on Friday reported the number of cattle in U.S. feedlots as of Sept. 1 at 11.2 million head, up 1% from a year ago and close to trade expectations.
In the hog market, benchmark CME December futures LHZ24 rose for the fifth time in the last six sessions on follow-through momentum from last week and brisk demand for pork.
CME December lean hogs settled up 0.650 cent at 74.875 cents per pound after rising to 75.150 cents, the contract's highest since June 4.
"National Pork Month is October, so we are still doing procurement for that," Nelson said. Additional support stemmed from news last week that France was boosting its surveillance of African swine fever (ASF) along part of the border with Germany as the disease continues to spread among wild boar in Europe.
Traders await the USDA's quarterly Hogs and Pigs report on Thursday. Analysts surveyed by Reuters on average expect the government to report the US hog herd as of Sept. 1 at 76.285 million head, up 0.2% from a year ago, while the number of hogs kept for breeding was seen down 2.1% year-on-year.
