CHICAGO – Chicago Mercantile Exchange hog futures rose on Monday, hitting next month’s highs since April 22, with top pork consumers expecting higher demand from China, traders said.
The most active July Hog Futures deal has ended firmly for the sixth time in the last seven sessions, but has faced technical resistance on its 30-day moving average.
The near-term Hogs contract added 1.5 cents to 110.375 cents per pound while the July futures rose 1.85 cents to 110.85 cents per pound.
Brokerage FuturesOne said in a note addressed to clients, “China is likely to stabilize demand in the short term to ease lockdowns as livestock liquidation slows down.”
Daily hog slaughter was reported at 473,000 heads, down from 479,000 a year earlier.
Cattle futures were also strong, with CME June Live Cattle Futures rising 1.2 cents per pound to 132.775 cents, while the most active August Live Cattle rose 1.425 cents to 132.975 cents per pound. The CME August feeder cattle finished at 165.625 cents, up 1.7 cents per pound.
The preferred cut price for boxed beef was reported at $ 263.70 per cwt on Monday morning, up 92 cents from Friday afternoon where selected cuts rose from $ 245.03 to $ 245.18, according to the U.S. Department of Agriculture, according to the U.S. Department of Agriculture.
After the close, the USDA said that as of April 30, frozen beef stocks stood at 531.728 million pounds, up 18.5% from a year earlier.
The supply of frozen pork increased from 456.921 million to 530.244 million pounds. (Reporting by Mark Weinrab; Editing by Devika Shyamnath)