Hog contracts ease as pork prices remain under pressure - CME

Chicago Mercantile Exchange (CME) live cattle futures ended mostly higher on Thursday as traders returned their focus to tight US cattle supplies and firming beef prices, Reuters reported, citing traders.

The cattle market had tumbled last week and again on Wednesday after US President Donald Trump sought to reduce beef prices. The Trump administration said on Thursday that it would quadruple the country's low-tariff imports of Argentine beef.

But economists and brokers said the administration's approach would probably not do much to lower prices in the near term.

"The amount of beef that Argentina is going to be able to bring in is not going to really help to fill the shortage," said Dan Norcini, an independent trader.

"We are at almost a 70-year low in (US) cattle supplies. There is no magic cure for that," Norcini said, adding that the process of rebuilding the US cattle herd will take time.

CME December live cattle settled Thursday up 1.350 cents, or 0.56%, at 241.175 cents per pound, bouncing after Wednesday's 2% drop. February cattle ended up 0.300 cent at 240.675 cents.

However, feeder cattle futures fell on ideas that cattle supplies could build eventually, cooling demand for younger animals. November feeders ended down 2.775 cents at 361.450 cents per pound.

Meanwhile, wholesale beef prices ticked higher. The US Department of Agriculture (USDA) priced choice cuts of beef at $373.14 per hundredweight, up $2.49 from Wednesday and the highest reading in a month. Select cuts rose $1.13 to $354.74 per cwt.

CME lean hog futures ended lower, anchored by soft pork prices. December hogs settled down 0.625 cent at 81.775 cents per pound and February ended down 0.875 cent at 84.350 cents.

The USDA priced pork carcasses at $99.71 per cwt on Thursday afternoon, down 4 cents from Wednesday.