News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

LIVESTOCK-Hog futures surge to highest in over three months

01/21/2022 | 04:49pm EDT

CHICAGO, Jan 21 (Reuters) - Chicago Mercantile Exchange hog futures rose 1.5% on Friday to hit their highest since mid-October, extending a rally on technical buying.

Traders remained focused on the slaughter rate as COVID-19 disruptions have caused slowdowns at meat processors throughout the month.

"The industry still isn't functioning normally, though the processing slowdown means a tighter pork pipeline currently and bigger picture we are trending into seasonally smaller hog supplies," brokerage StoneX said in a note to clients.

Most actively traded February lean hogs rose 1.275 cents to 86.2 cents per pound. The contract rose above the high end of its 20-day Bollinger range.

On a continuous basis, the front-month contract hit its highest since Oct. 14 during the session.

Hog futures have risen for five sessions in a row, their longest streak of gains since June.

CME February live cattle futures dropped 0.4 cent to 137.925 cents per pound. March feeder cattle futures were down 1.65 cents at 163.3 cents per pound.

A U.S. Agriculture Department report on Friday afternoon showed that the amount of cattle on feed as of Jan. 1 stood at 101.0% of the year-ago total. Analysts had been expecting 100%.

Placements during December were also bigger than expected, coming in at 106.0% of the year-earlier total, compared with market forecasts for 102.6%. Marketings during the month were 100.0% of December 2020, below forecasts for 100.8%.

Meat processors slaughtered an estimated 445,000 hogs on Friday, down 12,000 from Thursday, USDA said. The cattle slaughter dropped by 2,000 to 114,000.

Profit margins for beef processors rose to $475.70 per head of cattle on Friday from $456.90 on Thursday, said Pork processors' margins rose to $36.05 from $34.50 per head. (Reporting by Mark Weinraub; Editing by Devika Syamnath)

© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
FEEDER CATTLE?FUTURES (GF) - CMG (ELECTRONIC)/C1 0.09% 154.72 End-of-day quote.-7.37%
LEAN HOGS (HE) - CMG (ELECTRONIC)/C1 -0.83% 110.175 End-of-day quote.36.36%
LIVE CATTLE (LE) - CMG (ELECTRONIC)/C1 -0.21% 132.125 End-of-day quote.-5.23%
S&P GSCI FEEDER CATTLE INDEX -0.21% 196.4857 Real-time Quote.-2.13%
S&P GSCI LEAN HOGS INDEX -0.09% 163.844 Real-time Quote.37.13%
S&P GSCI LIVE CATTLE INDEX -0.15% 451.8772 Real-time Quote.-5.23%
Latest news "Economy & Forex"
04:11aNepal plane goes missing in bad weather with 22 on board -officials
04:00aShanghai takes further steps towards reopening, Beijing eases COVID curbs
03:51aUAE's ADQ to allocate $10 billion in investments in partnership with Egypt, Jordan - WAM
03:23aQatar central bank governor expects GDP growth of 3.5% in 2022
03:16aShanghai to cancel "unreasonable restrictions" to resume work - official
03:10a'Message to the world' - Lithuanians fundraise to buy drone for Ukraine
02:50aMonsoon rains lash India's Kerala coast, two days ahead of usual
02:28aQatar central bank governor expects GDP growth of 3.5% in 2022
02:23aAustralia PM says Pacific leaders 'positive' on his new push
02:21aAustralia PM says Pacific leaders 'positive' on his new push
Latest news "Economy & Forex"