US hog, cattle markets both rise - CME
Wall Street rallies on Trump win
7 November 2024
2 minute read
By: Chicago Mercantile Exchange (CME) livestock futures rose on Wednesday as strength from record highs on Wall Street spilled over into agricultural markets after Donald Trump was elected US president, Reuters reported, citing analysts.
The surge in equities raised hopes that a strong economy could support US meat demand.
"A rising tide lifts all boats," said Ted Seifried, chief market strategist for Zaner Ag Hedge.
In lean hog futures, prices rebounded after falling to the lowest level in more than a week. The market had previously pulled back after soaring to contract highs last week on smaller-than-expected supplies of US hogs, traders said.
CME December lean hog futures recovered to end up 1 cent at 82.125 cents per pound on Wednesday.
The wholesale pork carcass cutout value also rose, led by a $6.20 increase in pork bellies, according to US Department of Agriculture data. It was a turnaround after belly values sank by $6.28 on Tuesday.
Recent rallies in belly prices due to strong demand have helped support hog futures, traders said.
"The main downside price risk for the hog market now is that recent gains are heavily concentrated in bellies alone," Steiner Consulting said in a note.
Traders also eyed the Mexican peso after Trump's victory, as a weakness in the currency can restrict Mexico's demand for US hams. The peso was narrowly weaker after largely recovering from a slump earlier in the day to its lowest level in more than two years.
In beef markets, CME December live cattle ended up 0.626 cent at 185.4 cents per pound, snapping a six-session slump.
CME January feeder cattle futures jumped 1.675 cents to close at 244.025 cents per pound and hit the highest level since Oct. 29.
Choice and select cuts of boxed beef weakened, the USDA said.
The agency is slated to report weekly US beef and pork export sales on Thursday.
