June lean hog futures slide - CME
Cattle futures hover near highs as cash prices jump
2 May 2025
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures hovered near recent contract highs on Thursday as traders said cash prices galloped to new highs, reported Reuters.
Tight US supplies continue to drive up cash prices as meatpackers compete to buy cattle to process into beef.
US cattle inventories dwindled to their lowest levels in decades after drought in recent years dried up pasture lands used for grazing, pushing ranchers to send more animals to slaughter.
Cash cattle prices reached $223 per cwt in Iowa and $218 in Texas and Kansas, up about $6 from last week, a broker said.
"It's been a cash-led bull market, which is a solid market," he said.
CME June live cattle futures closed up 1.25 cents at 209.65 cents per pound, after setting a contract high of $211 on Wednesday. Several deferred month contracts set new highs on Thursday.
CME August feeder cattle futures slipped 0.575 cent to finish at 294.45 cents per pound. The contract set a high of $297.80 on Tuesday.
Reduced slaughtering rates fuelled concerns among some traders about weakening demand for cattle at high prices, which left processors facing losses estimated at $100 per head.
Processors slaughtered an estimated 465,000 cattle so far this week, down from 479,278 cattle over the same period last year, according to US Department of Agriculture data.
Consumer demand for beef is typically strong heading into the Mother's Day and Memorial Day holidays in May and the start of the summer grilling season, brokers said.
Prices for select cuts of boxed beef rose $2.26 to $324.28 per cwt, while choice cuts declined $2.14 to $343.17 per cwt, according to the USDA.
The agency separately reported net US beef export sales were 12,900 metric tons for 2025 in the week ended on April 24, up 6% from the prior four-week average.
For pork, weekly export sales of 34,500 metric tons for 2025 were up 34% from the prior four-week average.
CME June lean hog futures lost 0.1 cent to close at 98.175 cents per pound.
