Chicago | Reuters — U.S. hog futures rose to their highest in more than a year on Tuesday, rallying to keep pace with recent gains in the cash market.
The cash market strength stemmed from continued good demand even as the traditional U.S. grilling season draws to a close with the weather turning cooler.
“There’s been nothing normal about 2020 since March, and this late-summer contraseasonal hog and pork strength certainly fits that theme,” brokerage StoneX said in a note to clients.
Chicago Mercantile Exchange October lean hogs gained 1.575 cents to close at 76.325 cents/lb. Most-active December hogs were up 1.225 cents, settling at 63.875 cents.
On a continuous basis, the front-month contract’s peak of 76.375 was its highest since Aug. 14, 2019.
The U.S. pork cutout, an indication of wholesale pork prices dropped to $92.55/cwt. It hit its highest in more than four months last week.
Cattle futures were mixed, with live cattle rising on support from strong demand in the cash market.
CME October live cattle rose 0.375 cent to 109.2 cents/lb. and most-active December ended up 0.2 cent at 111.95 cents.
Front-month live cattle futures hit their seven-month high.
CME November feeder cattle dropped 2.4 cents to 137.525 cents/lb.
Meatpackers slaughtered an estimated 120,000 cattle on Tuesday, unchanged from a week ago but up 2,000 head from a year earlier, according to the U.S. Department of Agriculture.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.