CATTLE-USA USA pig futures rise due to strong pork exports, wholesale prices

CHICAGO, Apr 30 (Reuters) – US Lean Pork Futures. USA They rose on Thursday as weekly bullish US pork export data rose. USA And rising wholesale prices overshadowed concerns about a slowdown in the pace of US pig slaughter. USA

“You get a combination of strong export sales (and) the wholesale market is also very strong because of tighter supplies,” said Altin Kalo, agricultural economist at Steiner Consulting.

The benchmark index for the June Chicago Mercantile Exchange for lean pig futures settled at 3,425 cents at 58,950 cents per pound.

The US Department of Agriculture. USA He reported that US pork export sales in the week ending April 23 were 50,300 tons, a three-week high. China was the main buyer, reserving 35,138 tons, while actual shipments of pork to China totaled 20,683 tons, the most in five weeks.

Nationwide, the US pork cut. USA It rose by $ 9.99 on Thursday to $ 100.72 per cwt, according to the USDA, underscoring the impact of a drop in the daily slaughter of pigs as meat plants shut down due to the coronavirus that infects workers.

“We continue to lose slaughter capacity in the livestock sector as packers try to solve labor problems amid the coronavirus outbreak,” Arlan Suderman, chief commodity economist at INTL FCStone, wrote in a note to customers.

The slaughterhouses killed about 288,000 pigs on Thursday, compared to 266,000 on Wednesday, but compared to 361,000 the week before and 469,000 a year ago. Similarly, the daily slaughter of cattle, at 80,000 head, decreased from 84,000 a week ago and 123,000 a year ago, the USDA said.

CME live cattle futures closed higher, buoyed by rising wholesale meat prices and strong packer profit margins.

CME’s June live cattle contract set 1,675 cents at 85,950 cents per pound and the August contract raised 1,325 cents to 92,100 cents. But August CME feeder cattle futures fell, with August more active setting 1,950 cents at 126,500 cents per pound.

The USDA reported export sales of US beef in the last week at 9,400 tons, 16% less than the previous week and 43% of the previous four-week average.

Cash cattle trading has been very weak so far this week, with the USDA reporting some live exchanges at $ 95 per cwt in the Texas Panhandle, compared to last week’s cash trend of $ 95 to $ 100. (Report by Julie Ingwersen; Grant McCool edition)

 

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