Chicago | Reuters – Chicago Mercantile Exchange livestock futures rose on Friday, with the hog market reaching its highest price in a week as profit margins improved for pork processors.
The hog market has turned higher after dropping to a one-week low on Wednesday.
Most-active October lean hog futures LHV3 ended up 1.775 cents to 85.025 cents per pound on Friday, hitting their highest price since July 21.
Margins for pork processors rose to $12.95 from $2.20 on Thursday and $11.55 a week ago, HedgersEdge.com said. Improved margins can boost packers’ demand for hogs.
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Processors slaughtered an estimated 460,000 hogs, compared to 438,000 hogs a week ago and 438,000 hogs a year ago, according to the U.S. Department of Agriculture.
For beef processors, margins are worsening. They lost an estimated $80.85 per head of cattle slaughtered on Friday, compared to losses of $77.90 on Thursday and losses of $62.65 a week ago.
Packers slaughtered an estimated 110,000 cattle, down from 114,000 cattle a week ago and 122,000 cattle a year ago, the USDA said.
In CME cattle futures, August live cattle LCQ3 rose 0.100 cent to 178.150 cents per pound. Most-active October live cattle LCV3 also advanced 0.100 cent to settle at 179.600 cents per pound.
August feeder cattle FCQ3 futures ended up 0.950 cent at 245.600 cents per pound. Weakness in corn futures Cv1 helped support feeders by signaling lower costs for feed, traders said.
–Reporting for Reuters by Tom Polansek in Chicago.
