Chicago | Reuters — Chicago Mercantile Exchange live cattle and lean hog futures rose again on Thursday, as fresh export numbers underscored strong demand for meat.
Meanwhile prices on feeder cattle futures were mixed, as trades in the cash market prices jumped, traders said.
Cash cattle had traded earlier in the week at $137-$138/cwt in the U.S. corn belt, said Don Roose, president of agricultural broker U.S. Commodities (all figures US$). But cash trades on Thursday were as high as $142/cwt, in response to tightening supplies, he said.
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“It was a ‘risk-on’ trading environment today, with the packer still has profitability and signs of strong demand both in the domestic and export markets,” Roose said.
The U.S. Department of Agriculture, in a weekly report, reported 2021 U.S. pork export net sales were 41,100 tonnes in the week ended Nov. 26 — a 48 per cent increase over the prior four-week average.
U.S. beef export net sales were 21,600 tonnes for 2021 — up 12 per cent from the previous week and up five per cent from the prior four-week average, USDA said.
CME February lean hogs settled up 1.875 cents at 82 cents/lb.
CME February live cattle finished 0.975 cent higher at 139.575 cents/lb. CME January feeder cattle slipped Thursday by 0.05 cent, to 165.775 cents/lb.
Equity and grain commodity markets also rebounded on the day, as rising cases of the new Omicron variant globally continued to drive volatility across markets.
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.
The first known U.S. case of community transmission of the variant was identified in Minnesota on Thursday, the state’s health department said.
— Reporting for Reuters by P.J. Huffstutter in Chicago.
