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Commodity futures

Global Meat and Livestock Market Update: May 2005

Strategic Insights

— 2 min read

The global meat and livestock market is experiencing a mix of trends in May 2005, with fluctuating prices and trade restrictions. The Chicago Mercantile Exchange lean hogs closed mixed to mostly firm, while pork bellies settled sharply higher due to short covering and lean hog advances. Meanwhile, the Russian government has decided to lower the duty on imported beef, and the output of Russian meat processors increased by 4.4% in January-April.

Key Takeaways:

  • The Chicago Mercantile Exchange lean hogs closed mixed to mostly firm, with June ending 30 points lower at 71.65 cents a pound and July finishing 42 points higher at 71.00 cents.
  • Pork bellies settled sharply higher on short covering and lean hog advances, with the May contract settling 220 points higher at 76.70 cents a pound.
  • The Russian government has lowered the duty on imported beef, and the output of Russian meat processors increased by 4.4% in January-April.
  • The U.S. Department of Agriculture has closed the U.S. border to cattle imports from Durango, Mexico, due to concerns over bovine tuberculosis.
  • Tyson Foods Inc. announced an investigation into alleged chicken-slaughter abuse, while Advanced ID Corporation delivered positive results from its field trials in Australia using radio frequency identification (RFID) technology.
  • Japan has eased its ban on U.S. beef imports by asking food regulators to study the feasibility of partially lifting the prohibition.
  • The U.S. Department of Agriculture reported average weights for barrows and gilts in Iowa/southern Minnesota at 268.2 pounds, up 0.4 pound from the previous week and 4.3 pounds above a year ago.
  • Live cattle futures ended higher on Wednesday, with spreads providing the bulk of the action in otherwise light trade. Feeder cattle futures closed mixed in light trade.
  • Moderate trading activity in Nebraska set a precedent for this week's fed cattle trade in the central and southern Plains.

Statistics:

  • The Chicago Mercantile Exchange lean hogs closed at 71.65 cents a pound (June) and 71.00 cents a pound (July).
  • Pork bellies settled 220 points higher at 76.70 cents a pound.
  • The output of Russian meat processors increased by 4.4% in January-April.
  • The U.S. Department of Agriculture reported average weights for barrows and gilts in Iowa/southern Minnesota at 268.2 pounds.
  • Live cattle futures ended higher on Wednesday, with an average price of [not specified].
  • Feeder cattle futures closed mixed, with an average price of [not specified].
  • The U.S. Department of Agriculture has closed the U.S. border to cattle imports from Durango, Mexico, effective immediately.

Sources:

  • Dow Jones Commodities News via Comtex
  • Prime-Tass
  • AP (Associated Press)
  • Dow Jones
  • Business Wire
  • COMTEX (http://www.comtexnews.com)

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