Live cattle and lean hog futures’ prices in Chicago Mercantile Exchange dropped on Friday in context of a year-end profit-taking breeze, but both benchmarks had marked off robust yearly gains on 2021, as front-month lean hog and live cattle contracts soar 16 per cent and 23 per cent respectively with live cattle contracts recording their strongest annual percentage gains since 2014.
Nonetheless, several analysts were quoted saying that a latest rebound in China’s hog stockpile following African swine fever outbreak, would more likely to curb out demands of US pork in 2022, as China’s pig stockpile at the end of November had been chartering about 4.7 per cent higher compared to the same time a year.
Meanwhile, as China was reportedly building up its hog stockpile following a catastrophic African Swine Fever outbreak first detected in 2018, President of Brugler Marketing, Alan Brugler was quoted saying “Lean hog futures fell on Friday on profit-taking and ideas that the nearby February contract was over-priced relative to cash hog prices.
Chicago live cattle futures, lean hog hit highest since 2014
Citing statistics, on Friday’s Chicago Mercantile Exchange closing bell, CME live cattle futures scheduled to be expired on February, 2022, fell 0.27 cents to 139.70 cents per pound, while front-month December cattle dropped 0.15 cents to 138.90 cents in a holiday-thinned trading session.
Nonetheless, cattle futures’ prices jump 22.97 per cent in the year as a pandemic-induced supply chain disruption had reportedly led to a meteoric jump in profit margin for canned meat producers. Besides, Chicago hog futures scheduled to be expired on February fell 1.22 cents to 81.47 cents per pound, while in the year, front month hog futures’ prices climbed 15.9 per cent, marking off the strongest annual gains since 2019.