Wholesale pork prices in the United States saw an upward trend earlier today, bolstering futures markets, analysts reported. According to the US Department of Agriculture (USDA), the pork carcass cutout climbed to $106.22 per hundredweight (cwt), marking a 27-cent increase from Thursday. Pork bellies also surged, rising by $4.51 to reach $145.15 per cwt.
Austin Schroeder, Commodity Analyst at Brugler Marketing and Management, attributed the rise in pork prices to a delayed seasonal demand. “It looks like we’re seeing increased support for the cutout due to a pickup in pork demand recently,” Schroeder commented.
Meanwhile, CME feeder cattle futures strengthened as Chicago Board of Trade corn futures experienced a significant drop, thereby lowering animal feed costs for the day, Schroeder noted.
In the cash cattle market, transactions reported a trade of $190 per cwt in southern markets on Friday, with northern markets recording another trade at $198 per cwt, according to market analysts.
Despite expectations of a relatively flat week in the cash market, feedlots have been slow in selling off their stock, causing beef packer margins to further decline.
As of Friday afternoon, USDA reported an increase in wholesale beef prices. Choice boxed beef cutout rose to $313.77 per cwt, up $1.31 from the previous day, while select cuts saw a $2.35 increase to $297.46 per cwt.
Closing on the futures market, CME August live cattle futures ended at 188.575 cents per pound, down 0.325 cents, while October live cattle futures fell slightly to 188.550 cents per pound, a decrease of 0.050 cents. CME August feeder cattle closed higher at 259.700 cents per pound, up 1.075 cents.
In the hog futures market, CME August lean hog futures closed lower at 93.475 cents per pound, down 0.300 cent, while October lean hog futures ended higher at 78.200 cents per pound, up 0.400 cent.
The fluctuations in both the pork and beef markets reflect ongoing dynamics in supply, demand, and feed costs, influencing market sentiment moving forward.
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