Lean hog prices surge as pork cutout climbs to 10-month peak - CME
Cattle futures hit record highs on tight US supply
9 June 2025
2 minute read
By: Chicago Mercantile Exchange (CME) cattle futures set life-of-contract highs on Friday, sparked by soaring cash prices as meat packers scrambled to keep their plants operating while cattle supplies remained tight, Reuters reported, citing traders.
CME August live cattle futures settled up 2.050 cents at 218.875 cents per pound after setting a contract high at 219.325 cents. CME August feeder cattle ended up 1 cent at 310.150 cents per pound.
Front-month June live cattle futures surged 5% this week to finish at 226.300 cents per pound but remained at a significant discount to cash prices. Cash cattle traded in Kansas as high as $235 per hundredweight (cwt), traders said, up about $13 from last week and as high as $232 per cwt in Texas.
"Without a top showing in the cash market, I don't know where futures stop," said Doug Houghton, an analyst at Brock Associates.
The US cattle herd has shrunk to its smallest in more than 70 years, according to US Department of Agriculture data, following several years of drought. Herd expansion will take several years, Houghton said.
Prices for choice cuts of boxed beef ticked lower after hitting a five-year high this week. The USDA priced choice cuts at $365.08 per cwt on Friday afternoon, down $1.77 from Thursday. Select cuts were up 12 cents at $356.73.
Lean hog futures also rose, with most months setting contract highs on spillover strength from the cattle market and robust wholesale pork prices.
Benchmark CME July hogs settled up 2.300 cents at 107.100 cents after setting a contract high at 107.275 cents.
The USDA reported the pork carcass cutout on Friday afternoon at $111.51 per cwt, up $3.39 from Thursday and the highest end-of-day reading since August 2023.
