CME Pork Futures Approach 4 Week High; the future of livestock is increasing

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CHICAGO, Dec.22 (Reuters) – Chicago Mercantile Exchange pork futures hit their highest prices in about four weeks on Wednesday, while cattle futures also rose.

Futures could come under pressure Thursday morning by monthly data from the US Department of Agriculture which showed supplies of frozen pork on November 30 were down 8% from the previous month and 3% from the previous month. last year, said Rich Nelson, chief strategist at Allendale.

Pork supplies typically tighten in November and last month’s reduction was in the lower end of usual declines, Nelson said.

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On November 30, frozen beef inventories were up 4% from the previous month, but down 4% from a year ago, the USDA said in its cold storage report.

“I would say the beef and pork stocks are bigger than expected,” Nelson said.

CME’s February lean pork futures were up 0.925 cents to 83.350 cents a pound and pegged their highest price since November 26 at 83.600 cents.

Traders await the USDA’s quarterly Hogs and Pigs report on Thursday, which is expected to show the country’s herd was about 2.9% smaller on December 1 compared to the previous year, according to a Reuters survey. analysts.

The agency will also release a monthly report on Thursday that should show that the United States had about the same number of feed cattle on December 1 as it did a year earlier, according to another Reuters survey. Analysts estimated that November livestock placements and sales were up from a year ago.

Live cattle from the February CME settled up 0.450 cents to 137.375 cents per pound. March CME feeder cattle closed 0.100 cents higher at 161.925 cents.

Given the demand, South Korea could increase its purchases of American beef in the coming weeks after it suspends imports of Canadian beef due to a case of bovine spongiform encephalopathy (BSE) in Canada, Nelson said. .

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Reporting by Tom Polansek in Chicago; Edited by Ramakrishnan M.

Our standards: Thomson Reuters Trust Principles.


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