Chicago | Reuters — CME hog futures eased on Tuesday, pressured by a government report released after the close on Monday that showed supplies of pork at their highest in two years.
The U.S. Agriculture Department on Monday afternoon said that frozen stocks of pork stood at 530.244 million lbs. as of April 30, up 16 per cent from a year earlier. The monthly total compares to pork stocks of 485.929 million lbs. at the end of March.
Cattle futures also were under pressure from robust supplies, with frozen beef stocks of 531.728 million lbs., representing an 18.5 per cent gain from a year earlier.
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The nearby June hogs contract dropped 1.35 cents, to 109.025 cents/lb., while July futures fell 1.8 cents to 109.05 cents/lb. (all figures US$).
China will buy 5,000 tonnes of local frozen pork for its state reserves on May 26, according to a notice on the website of the reserves management centre, as part of its plan to support domestic prices.
Cattle futures also were weak, with CME June live cattle futures dipping 0.05 cent, to 132.725 cents/lb., while the most-active August live cattle eased 0.225 cents, to 132.75 cents/lb.
CME August feeder cattle rose 2.525 cents, to 168.15 cents/lb.
Prices for choice cuts of boxed beef were reported at $263.65/cwt on Tuesday afternoon, down 63 cents from Monday afternoon, while select cuts rose to $245.35 from $244.23/cwt, according to USDA data.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.
