June 13, 2017 / 9:51 PM / 3 months ago

LIVESTOCK-Hogs rebound as U.S. wholesale pork hits 2-year high

    By Michael Hirtzer
    CHICAGO, June 13 (Reuters) - Chicago Mercantile Exchange
lean hog futures         jumped as much as 2 percent on Tuesday,
rebounding from losses in the previous session on support from
sharply higher wholesale pork prices, traders and analysts said.
    Prices for U.S. pork extended gains to the highest levels in
more than two years, according to U.S. Department of Agriculture
data, boosted by strong retailer demand during summer grilling
season, when consumers cook more meat outdoors.
    Live cattle         and feeder cattle         each declined
to the lowest levels since so far in June as investors locked in
profits following last week's multimonth highs. Some traders
also were unwinding long cattle and short hog spreads.
    CME July hog futures        gained 1.575 cents to 82.275
cents per pound. June hog futures       , which expire on
Wednesday, hit a life-of-contract high of 82.850 cents before
finishing at 82.775 cents, up 0.800 cent.
    "The (pork) cutout values continue to hit multiyear highs -
that is the driving force," said Don Roose, president of the
U.S. Commodities brokerage. "It's hard for the market to break
when the cutout is rising."
    Pork prices were up $1.83 to $94.97 per cwt, highest since
November 2014, led by gains in rib and pork belly cuts, USDA
data showed. Choice-grade beef was down $1.33 to $251.19 per cwt
but still was hovering near the highest levels in about 23
months.                    
    CME August live cattle        finished 0.675 cent lower at
120.875 cents per pound while CME August feeder cattle       
fell 1.600 cent to 149.950 cents per pound.
    Roose said traders were buying hogs and selling cattle.
    "Cattle looks a little lofty versus the pork," he said. "But
we have big (hog) supplies ahead of us, basically for the rest
of the year."

 (Reporting by Michael Hirtzer; Editing by Bill Trott)
  

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