Meat Futures Up Sharply
Meat futures prices, enlivened by strong cash markets, advanced sharply Friday on the Chicago Mercantile Exchange.
The July live hog contract soared the 1 1/2-cents-a-pound limit for daily trading, while the February and March pork belly deliveries were up by their 2-cent daily limits.
“The meat complex is still looking at strong cash markets,” said Charlie Richardson, an analyst in Denver with Lind-Waldock.
The lead months in live cattle and live hogs went off the board Friday, and both expired with strength.
August cattle and July hogs now become the lead months and, because they had been trading at a substantial discount, they were pulled higher by the expiring contracts, Richardson said.
“The bulls who were left in the expiring contracts shifted to the new lead months,” he said.
Richardson said the Agriculture Department’s quarterly hogs and pigs report due out Monday probably played little role in Friday’s market. The report generally was expected to show 2% declines from last year in the hog and pig population.
Treasury bond futures rallied in the closing hour and touched the 2-point limit allowed for daily trading before losing some of the gains.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
