U.S. lean hog futures closed higher on high pork prices and hot weather that is limiting animal weights.
Wholesale pork prices hit another all-time record high Friday and Chinese demand is expected to keep prices high as that country tries to deal with inflation. Meanwhile, the hot U.S. temperatures are making it harder for hogs to pack on weight, which is curbing supplies.
CME lean hogs for August closed up 0.325 cents at $1.031 per pound.
Cash hog prices were reported mostly steady Monday. Several processors need additional loads for delivery this week even though three plants were closed Monday for a floater holiday. Seasonally tightened supplies along with lighter live and carcass weights due to the recent heat wave have caused buyers to compete more aggressively for the animals that are available, according to livestock dealers and market managers.
The terminal markets traded from steady to as much as $3 a hundred pounds higher with top prices ranging from $66.50 to $74 a hundred pounds.
The USDA's pork carcass composite value, a measure of wholesale prices, on Friday rose 46 cents to $104.64 a hundred pounds, a new all-time high for a fourth consecutive day.