CHICAGO, Jan 20 (Reuters) – Chicago Mercantile Exchange hog futures jumped to their highest in more than three months on Thursday, supported by strength in the cash markets, traders said.
Most actively traded February lean hogs rose US2.625 cents to US84.925 cents per pound.
The front-month contract closed just below its session peak of US84.975 cents, which was its highest on a continuous basis since Oct. 14.
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Hog futures have risen for four sessions in a row, their longest streak of gains since late September.
CME February live cattle futures dipped US0.225 cent to US138.325 cents per pound. March feeder cattle futures were down US0.675 cent to US164.95 cents per pound.
Analysts were expecting a U.S. Agriculture Department report that will be released on Friday to show that the number of cattle on feed as of Jan. 1 stood at 99.8 percent of the year-earlier total. Placements during December were forecast at 102.6 percent of the December 2020 total and marketings at 100.8 percent.
Meat processors slaughtered an estimated 457,000 hogs on Thursday, in line with Wednesday’s kill but down 4,000 from a week earlier, USDA said. The cattle slaughter was pegged at 116,000, 2,000 higher than a week ago.
Profit margins for beef processors rose to US$456.90 per head of cattle on Thursday from US$426.20 on Wednesday, said HedgersEdge.com. Pork processors’ margins rose to US$34.50 from US$26.85 per head.
