# CME lean hogs bounce on short-covering; cattle futures rise | Financial Post

> Benchmark July lean hog futures on CME jumped nearly 5% on Wednesday, extending a two-day rally to 11% after a months-long slump. Cattle futures also rose to life-of-contract highs as tight U.S. cattle supplies and higher beef prices supported the market.

- Date: 2023-05-31 · published 2023-05-31T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/36086-cme-lean-hogs-bounce-on-short-covering-cattle-futures-rise-financial-post
- Commodities: [Lean Hogs](https://feedsoft.ai/c/HOGS.md), [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

The hog rally looks driven by short-covering from a near-record managed-fund net short, not a change in fundamentals. Tight cattle supplies support feeder and live cattle prices.

## Read by commodity

- HOGS: bullish ▲
- FCATTLE: bullish ▲
- LCATTLE: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| FCATTLE | 2023-05-31 | 5 | +15.6% | 7.7 | On the end date, cattle futures rose to life-of-contract highs on tight U.S. supplies and higher beef prices, directly reflecting the feeder rally. |
| LCATTLE | 2023-06-05 | 5 | +4.3% | 4.1 | Cattle futures hit life-of-contract highs on May 31 on tight supplies and higher beef prices, starting the rally. |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/cme-lean-hogs-bounce-on-short-covering-cattle-futures-rise

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.