Lean hog futures end higher - CME

Dec 16, 2024

Chicago Mercantile Exchange (CME) cattle futures fell in a technical reversal on Thursday after three days of gains, while lean hogs rebounded from three days of long-liquidation losses, Reuters reported, citing analysts.

The cattle market was getting technically overbought as the week wound down, though futures gained support from cash cattle trading higher this week and from a cold snap hitting the US Plains, said Don Roose, president of US Commodities.

"I think we saw some technical profit-taking," he said.

Cash cattle traded at $191 this week in Kansas, up from $187 this time last month, according to broker StoneX.

CME February live cattle settled 0.525 cent lower at 190.850 cents per pound, after earlier trading as high as 192.700 cents, its highest since May 24. January feeder cattle lost 0.700 cent to settle at 258.350 cents per pound.

Choice boxed beef added $4.01 to $315.24 per cwt, the US Department of Agriculture reported on Thursday, and select boxed beef gained $2.37 to $280.48 per cwt.

Beef packer losses were estimated at $62.05 per head on Thursday, compared with losses of $51.05 per head on Wednesday and $88.60 a week ago, according to marketing advisory service HedgersEdge.

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Video: Season 7, Episode 1: Managing Risk and Seeing Opportunities in U.S. Pork Production

Today’s episode features three guests discussing the similarities and differences between pork production in the United States and Brazil, along with strategies for managing risk in today’s industry while recognizing and acting on opportunities. First, Dr. Anne Caroline de Lara, executive manager of live pig production at Seara Alimentos, a JBS company in Brazil, is joined by Dr. Matthew Turner, head of operations for JBS Live Pork. Together, they discuss how labor, climate and ventilation challenges vary between Brazil and the United States, while underscoring their shared commitment to raising healthy pigs. They also point to lessons producers in both countries can take from one another’s systems and on-farm experiences. Then, Brady Reicks, risk manager at Reicks View Farms, shares his perspective on risk management, drawing from his background in markets and his transition into farming. He discusses how protecting margins varies by operation and offers practical approaches producers can use to make marketing and business decisions with greater confidence rather than hesitation.

Both conversations were recorded at recent industry events focused on swine livability, including the International Conference on Pig Livability and Iowa Swine Day.