Cattle and Hog Futures Prices Expected to Open Higher Amid Industry Developments

Strategic Insights -

Cattle and hog futures prices were anticipated to open higher in the US market on Friday, as Globex trading overnight indicated gains in live cattle and feeder cattle futures. Lean hogs were expected to open steady to firm, while pork bellies received a mixed call. The industry developments came on the heels of reports of cash trading in dressed markets at prices $1 to $2 higher than the previous week, signaling a potential live-basis trade of $1 higher.

Key Takeaways:

  • Cattle futures prices were expected to open higher due to gains in Globex trading overnight, with lean hogs opening steady to firm and pork bellies being called mixed.
  • The U.S. dollar was relatively unchanged, lacking significant direction for cattle futures, but increased open interest on Thursday could signal more investment money entering the market.
  • Feeder cattle futures could see strength from the live cattle pit due to the CME's feeder cattle index being up sharply on Wednesday.
  • Cash hog prices were called flat to weak, potentially limiting gains in futures for the near-term.
  • Pork cutout value for Thursday was at $56.13, down $1.41 for the week, but still up $1.13 from the previous day.
  • Technical support in most-active June hogs was provided at Monday's nearly five-week low of 70.57 cents a pound.

Statistics:

  • Global open interest increase in cattle futures on Thursday: Not explicitly stated.
  • U.S. dollar exchange rate: Approximately 1.00 (relatively unchanged)
  • Cash hog prices: Flat to weak
  • Pork cutout value for Thursday: $56.13 (up $1.13 from the previous day, down $1.41 for the week)
  • Technical support in most-active June hogs: 70.57 cents a pound

Sources:

  • Dow Jones Commodities News via Comtex (KANSAS CITY, Apr 03, 2009)
  • Dow Jones Newswires (By Lester Aldrich and Curt Thacker, Dow Jones Newswires; 913-322-5179 lester.aldrich@dowjones.com)