US hogs markets ease on technical trade - CME

Apr 29, 2024

Chicago Mercantile Exchange (CME) cattle futures turned higher on Thursday on technical trading, bouncing off the previous sessions lows in response to the US government announcing plans to expand testing of dairy cows for avian influenza, Reuters reported, citing market analysts.

Meanwhile, lean hog futures turned lower amid some profit taking, and signs that index fund traders may be selling off some of their hog positions and buying up cattle contracts, said independent trader Dan Norcini.

"It's a lot of technical trading happening right now, and these markets can feed off one another," Norcini said.

Most-active CME June lean hogs settled down 2.450 cents at 105.000 cents per pound.

Actively traded CME June live cattle settled up 2.550 cents at 177.800 cents per pound. Most-active CME August feeder cattle settled up 2 cents at 258.300 cents.

Rising prices for choice cuts of beef also added support while fears over the spread of avian influenza in dairy herds hung over the market, capping rallies.

The virus has not been detected in beef cattle, but traders worry the infections could threaten demand for beef along with dairy products.

Colombia has restricted the import of beef and beef products coming from US states where dairy cows have tested positive for avian influenza as of April 15, according the US Department of Agriculture.

It is the first country to officially limit trade in beef due to avian influenza in cows, in a sign of a broadening economic impact of the virus that has restricted poultry trade globally. Colombia imports a small amount of beef from the US annually, according to government data and market analysts.

"The issue will be if any other country, or countries that are serious export customers, join Colombia, then that would be a real blow to the market," said Cassie Fish, a livestock analyst and author of The Beef blog.

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Video: Secure Pork Supply Plan | Prepare to Protect Your Herd | U.S. Pork Producers

Join Jill Brokaw, a third-generation pig farmer and staff member of the National Pork Board, as she dives into the vital role of the Secure Pork Supply (SPS) Plan in preparing the U.S. pork industry for potential foreign animal disease outbreaks. This video is an essential watch for pork producers who are looking to safeguard their operations against the threats of diseases like foot and mouth disease, classical swine fever, and African swine fever.

•Why Should Pork Producers Care?

An outbreak of foreign animal diseases in the U.S. could lead to severe restrictions and potentially result in industry-wide financial losses estimated between $15 to $100 billion. The SPS Plan is a collective effort to prevent such catastrophic outcomes by enhancing biosecurity, ensuring animal traceability, and promoting effective disease monitoring.

What You'll Learn:

The Importance of Preparedness: Understand why being proactive is crucial for maintaining business continuity during an outbreak.

•Enhanced Biosecurity Measures:

Write a site-specific biosecurity plan that can serve as the first line of defense against potential outbreaks.

•Animal Disease Traceability:

Learn about the significance of tracking animal movement and how acquiring a premises identification number (PIN) and using AgView can facilitate this process. Disease Monitoring: Find out how continuous observation and reporting can keep your herd healthy and disease-free.

•Getting Started with SPS:

The video breaks down the seemingly daunting task of preparing for a foreign animal disease outbreak into manageable steps. With free resources available at www.securepork.org, including templates and instructions, Jill guides producers on developing a customized plan to enhance their farm's defenses.

•Expert Insights:

Hear from Dr. Pam Zaabel on collaborating with your herd veterinarian to develop and implement your SPS plan effectively.

•Takeaway:

The Secure Pork Supply initiative is more than a plan; it's a commitment to the resilience of our food supply and the livelihoods within the pork industry. By embracing these proactive measures, we can collectively enhance our preparedness for foreign animal disease outbreaks.