Lean hog futures resume climb to new highs on robust demand

Hog futures have soared in recent weeks, with April futures touching a 6-1/2 year front-month-contract high on Friday, as traders eyed strong domestic pork demand from restaurants that have been reopening from COVID-19 restrictions and as warmer weather has more people grilling outdoors.

Hog futures shrugged off news of tense talks between U.S. and Chinese officials this week amid forecasts for continued strong pork imports by the world’s top consumer.

“Negative talks with China are a bit of a problem, but it’s obvious that China needs pork. The talks won’t get in the way of that,” said Craig VanDyke, analyst with Top Third Ag Marketing.

April lean hogs peaked at 95.725 cents per pound, a new contract high, but closed down 0.050 cent at 94.250 cents. Actively traded June futures rose 0.575 cent to 100.600 cents.

CME live cattle futures ended lower on Friday as traders took positions ahead of the USDA’s monthly cattle-on-feed report due after the close.

The USDA reported March 1 on-feed supplies at 102% of a year ago, while February marketings and placements were both at 98% of a year ago. The figures were all in line with market expectations.

Nearby live cattle futures were anchored by flat cash market prices, with Plains feedlot cattle trading largely steady around $114 per cwt this week.

April live cattle fell 0.175 cent to 118.400 cents per pound, while actively traded June futures dropped 0.975 cent to 118.675 cents. April feeder cattle declined 2.000 cents to 139.425 cents per pound.