Chicago | Reuters — Chicago Mercantile Exchange livestock futures finished higher on Wednesday as the markets recovered after dropping the previous session to their lowest prices in more than a week.
Prices rose as investors’ concerns eased about the Omicron coronavirus variant, which rattled commodity and financial markets on Tuesday, traders said. Chicago Board of Trade grain futures also advanced after falling on Tuesday.
The U.S. on Wednesday identified its first known case of Omicron, though brokers said there were no signs of disruptions to demand for agricultural products.
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CME February lean hogs settled up 0.15 cent at 80.125 cents/lb., after dropping on Tuesday to the lowest price since Nov. 11 at 78.675 cents. The contract on Wednesday stayed within Tuesday’s trading range.
The wholesale U.S. pork carcass cutout price fell by $1.01, to $86.70/cwt on Wednesday, the U.S. Department of Agriculture said. Ham prices pulled back $4.82, to $65.18.
In the beef market, prices for choice cuts shipped to wholesale buyers in large boxes fell $5.90, to $271.68/cwt, USDA said. Prices for select cuts of boxed beef eased $1.73, to $260.29/cwt.
CME February live cattle finished 0.7 cent higher at 138.6 cents/lb. Futures on Monday set a contract high of 141.85 cents before falling on Tuesday to the lowest price since Nov. 19 at 137.35 cents.
CME January feeder cattle advanced 0.975 cent to 165.825 cents/lb. on Wednesday.
Tightening cattle supplies and strong demand from meat packers recently pushed cattle futures higher.
U.S. packers slaughtered 122,000 cattle on Wednesday, up from 121,000 cattle a week earlier and 119,000 cattle a year ago, USDA said.
In Canada, workers at Cargill’s major beef slaughter plant at High River, Alta. will vote on a new company offer backed by union negotiators, just days before a potential strike, the company said.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
