CME hog futures hit new highs

Chicago Mercantile Exchange (CME) hog futures notched new contract highs on Wednesday on short covering, a tighter supply of slaughter-ready hogs and strong demand for US pork, Reuters reported, citing traders.

Live cattle futures ended slightly lower and feeder cattle futures ticked higher in a choppy day driven by technical trading.

Most-active CME April lean hog futures edged up 1.35 cents to 94.325 cents per pound.

CME April live cattle futures ended 0.275 cent lower at 195.725 cents per pound. March feeder cattle settled up 0.2 cents to 264.975 cents per pound.

Hog futures have been supported by short covering as traders exit short positions in hogs and long positions in cattle. Resilient demand for pork and a lower-than-expected number of slaughter-ready hogs have also helped most hog futures contracts clinch lifetime highs.

Cattle futures meanwhile have been pressured by a weakening cash market and meatpackers that have been less willing to pay up for pricey cattle as their margins decline.

"Buyers are getting more reluctant," said Matthew Wiegand, broker at FuturesOne. "There's no incentive for them to bid up."

Meatpackers are losing an estimated $188.95 per head of cattle they slaughter, Hedgersedge reported.

The US Department of Agriculture, in a monthly report on Tuesday, said a larger calf crop and the resumption of cattle imports from Mexico contributed to an increased production forecast for beef for 2025, adding pressure to cattle futures.

The USDA two weekends ago said it would resume cattle imports from Mexico that the agency had blocked since late November over a pest found south of the border, which has also added pressure to cattle futures.