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LIVESTOCK-CME lean hogs surge on stocks data, strong pork demand
April 25, 2017 / 9:16 PM / 6 months ago

LIVESTOCK-CME lean hogs surge on stocks data, strong pork demand

    * Actively traded lean hog contracts surge 3 pct
    * Tight pork stocks, robust demand lift hogs
    * Cattle gain on strong demand for beef

    By Karl Plume
    CHICAGO, April 25 (Reuters) - Chicago Mercantile Exchange
lean hog futures climbed for a second day on Tuesday, with some
contracts surging more than 3 percent, on bullish pork stocks
data and seasonal buying, traders said.
    Prices climbed from the opening bell as the U.S. Department
of Agriculture reported tighter-than-anticipated U.S. stocks of
frozen pork and the tightest March pork belly stocks on record
in a monthly report after Monday's market close.             
    "I think the hogs are moving off partly the bullish cold
storage report and the fact that the seasonal rally is due to
start this time of the year," said independent livestock trader
Dan Norcini.
    "Pork demand must be phenomenal based on that cold storage,"
he added.
    The USDA said March pork belly stocks were up slightly from
the prior month but down 68 percent from a year earlier.
    CME May lean hogs         closed 0.825 cents per pound
higher at 65.225 cents. The actively traded June contract
        ended up 2.300 cents at 71.825 cents, a 3.3-percent gain
that was the contract's strongest in nearly seven months.
    Live cattle futures rebounded from Monday's setback on
strong beef demand and tighter-than-expected frozen beef
supplies, with prices hovering just below one-year highs posted
late last week.
    The USDA's cold storage report on showed a 38-million-pound
drop in U.S. frozen beef stocks during March, one of the
steepest declines on record for the month.
    CME April live cattle         closed 0.825 cent per pound
higher at 129.825 cents. Actively traded June futures        
ended 0.975 cents higher at 115.825 cents, notching a gain for
the thirteenth time in the last 14 sessions.
    Tuesday afternoon's average wholesale choice beef price
climbed 34 cents per cwt to $219.01 while select cuts added
$1.98 to $206.27, the USDA said.
    CME April feeder cattle         ended 0.475 cent per pound
higher at 138.725 cents. Actively traded May         closed
0.225 cents higher at 137.675 cents.

 (Reporting by Karl Plume)
  

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