Hog futures end mostly higher - CME
Firm cash markets, strong beef prices lift cattle futures
16 January 2025
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle futures rose on Wednesday and hovered near long-term highs established late last week, supported by strong demand for beef and firm cash markets for slaughter-ready cattle, Reuters reported, citing traders.
February live cattle futures settled up 1.125 cents at 198.525 cents per pound and April live cattle rose 1.175 cents to end at 199.325 cents.
CME March feeder cattle rose 1.600 cents to finish at 269.800 cents a pound.
Cash cattle traded lightly in Kansas and Texas on Wednesday at $200 to $201 per hundredweight (cwt), steady to $1 higher versus last week's trades, according to brokers and a daily market note from the US Department of Agriculture. At the equivalent of about $2 per pound, the cash prices are above futures prices.
"When you are talking about those big cash numbers, the futures (market) has a hard time going down because it's at a discount," said Don Roose, president of US Commodities.
Wholesale beef prices remained unseasonably high, adding to bullish sentiment. The USDA priced choice cuts of beef on Wednesday afternoon at $334.14 per cwt, up $1.16 from Tuesday and the highest reading since June 2023.
"You haven't reached a level where we have slowed down the demand, either on the export or the domestic side," Roose said.
Meanwhile, CME hog futures ended mostly higher, although the front-month February contract closed lower after a five-session climb.
February lean hogs settled down 0.500 cent at 83.125 cents per pound while most-active April hogs rose 0.525 cent to finish at 91.025 cents after reaching 91.375 cents, the contract's highest point since Dec. 10. Deferred months set life-of-contract highs, including the June and July hog contracts.
Improving pork prices lent support. The USDA priced pork carcasses at $90.83 per cwt on Wednesday afternoon, up 62 cents from Tuesday.
