U.S. livestock: CME hogs touch October high on fund buying

Chicago | Reuters – Chicago Mercantile Alternate lean hog futures reached their highest degree since October on Monday amid annual changes by funds in commodity markets, brokers mentioned.

Fund shopping for initially of the 12 months additionally supported grain and soy futures on the Chicago Board of Commerce.

CME February lean hog futures LHG26 closed 2.050 cents increased at 86.150 cents per pound.

A “risk-on” mentality within the markets helped drive positive aspects, although the market appeared as if it was turning into overbought, a dealer mentioned.

CME feeder cattle additionally superior, with March futures FCH26 ending 2.625 cents increased at 355.575 cents per pound. The contract set its highest degree since October 23.

Within the reside cattle market, February futures LCG26 slipped 0.125 cent to 235.875 cents per pound after leaping on Friday to their highest degree since October 24.

Final week, cattle merchants refocused their consideration on tight U.S. provides after Mexico reported two circumstances of New World screworm in livestock in two days. The U.S. has largely blocked imports of Mexican livestock since Could due to an outbreak of the flesh-eating livestock pest in Mexico.

“The market seems to have concluded {that a} resumption of commerce is not imminent,” consultancy Steiner Consulting Group mentioned in a word.

U.S. cattle provides dwindled after ranchers lowered their herds because of a years-long drought that dried up pasture lands and raised feeding prices.

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