Sign in Subscribe
Commodity futures

Cattle and Hog Markets Reach New Highs Amid Beef and Pork Price Bids

Strategic Insights

— 2 min read

The Chicago Mercantile Exchange (CME) live and feeder cattle futures contracts hit new life-of-contract highs on June 7, 2004, as beef packers are expected to increase price bids for cash live cattle. The CME lean hog futures finished narrowly mixed amid fundamental support, including firm cash values, spreading, and rolling. The CME will close on Friday, June 11, 2004, for a national day of mourning for former President Ronald Reagan.

Key Takeaways:

  • The CME live and feeder cattle futures contracts reached new life-of-contract highs on June 7, 2004, due to expectations of increased price bids for cash live cattle.
  • The CME lean hog futures finished narrowly mixed, with support from fundamental factors such as firm cash values, spreading, and rolling.
  • The CME will close on Friday, June 11, 2004, to observe a national day of mourning for former President Ronald Reagan.
  • Russia will accept meat imports from the European Union under individual national veterinary certificates for now, but will require a uniform EU certificate as of October 1.
  • Australian beef exports now dominate the Japanese import market due to a ban on imports of U.S. beef.
  • Companies involved with mad-cow disease testing have reached a cooperation agreement to further develop cattle testing procedures.
  • Cargill Inc. discovered genetic markers in cattle that make for good-tasting meat.
  • U.S. agriculture export credit programs are a point of contention in World Trade Organization negotiations, with the U.S. and European countries disagreeing on whether they constitute trade subsidies.
  • U.S. wholesale beef and pork prices rebounded after the Memorial Day holiday, with the categories retracing 43% and 35% of the decline, respectively.
  • Australian beef exports surged 12% in May compared to April, with shipments to Japan and the U.S. increasing sharply.

Statistics:

  • The CME live and feeder cattle futures contracts reached new highs of $73.60 and $73.85, respectively.
  • The CME lean hog futures prices were $52.10 and $52.95.
  • The CME will close on Friday, June 11, 2004.
  • Russia will require a uniform EU certificate for meat imports from the European Union as of October 1, 2004.
  • Australian beef exports made up 80% of total exports to Japan and the U.S. in May.
  • U.S. wholesale beef prices rebounded 43% and pork prices rebounded 35% after the Memorial Day holiday.
  • Australian beef exports surged 12% in May compared to April.

Sources:

  • OsterDowJones, June 7, 2004, "CME Cattle Review: String Of New Highs Lengthens; Strong Cash -- Late Selling Trims Gains"
  • OsterDowJones, June 7, 2004, "CME Pork Review: Hogs Mixed; Fundamentals, Spreads, Roll -- Cattle, Cash Keep Hogs Jun From Unraveling; Spot Month Hit New High -- Unquoted Cash, Uneven Hogs, Commission House Sales Pressure Bellies"
  • Dow Jones, June 4, 2004, "CME To Close Friday In Observance Of Day Of Mourning For President Reagan"
  • Interfax, June 4, 2004, quoted Agriculture Minister Alexei Gordeyev, "Russia Wants Uniform EU Certificate For Meat Imports"
  • Dow Jones, June 7, 2004, "Australian Beef Exports Dominate Japanese Import Market - MLA"
  • Meat & Livestock Ltd, June 4, 2004, "Company Merger May Help Advance Mad-Cow Testing Procedures"
  • Cargill Inc., June 4, 2004, "Better-Tasting Beef Through Genetic Testing?"
  • OsterDowJones, June 4, 2004, "Export Credit Is Sticking Point In WTO Ag Trade Talks - US Offl"
  • Dow Jones, June 4, 2004, "US Wholesale Beef, Pork Prices Rebounding After Holiday"
  • Meat & Livestock Ltd, June 4, 2004, "Australian Beef Exports Surge 12% In May Vs April"
  • AP, June 4, 2004, "EU: Russia Reverses Decision To Halt Meat Imports From EU"

Read more