Pork rebounds as China cuts herd, boosting US export hopes - CME
Cattle futures hit record highs on tight US supplies
24 July 2025
2 minute read
By: Chicago Mercantile Exchange (CME) live and feeder cattle futures rallied to fresh contract highs on Wednesday, as tight supplies and strong cash market prices continued to send future contracts surging, reported Reuters, citing market analysts.
Meanwhile, CME hog futures rebounded off Tuesday's dip, as USDA data showed wholesale carcass prices steadied and wholesale belly prices firmed. And news that China will reduce the number of breeding sows and curb new production capacity was friendly for Chicago hog futures, said Dan Norcini, an independent livestock trader.
Any Chinese inventory shortfalls might be offset by increased imports, which could be a boon for US producers, Norcini said.
CME August lean hog futures ended up 0.725 cent at 108.475 cents per pound, while most-active October ended up 0.400 cent at 90.900 cents per pound.
Futures and prices in cash markets across the US have spiked as cattle inventories have dwindled to their lowest levels in decades.
The cattle slaughter pace has slowed, government data showed, as packer marginsremain in the negative. And cattle supplies further tightened earlier this month, when the US Department of Agriculture (USDA) has again halted imports of Mexican cattle into the United States due to the spread of the damaging livestock pest New World Screwworm in Mexico.
"The reality right now is if you want replacement calves? You're going to have to pay up for them," Norcini said.
Cattle traders said they're awaiting a monthly US Department of Agriculture (USDA) report on Friday, which analysts expect to show 0.8% fewer cattle in US feedlots compared to a year ago.
Analysts surveyed by Reuters on average also estimated feedlot placements in June at 98% of a year ago and June cattle marketings at 96.4% of a year ago.
CME August live cattle futures settled up 2.050 cents at 227.025 cents per pound on Wednesday, while most-active October live cattle futures ended up 2.375 cents at 223.500 cents per pound.
CME August feeder cattle futures ended 3.250 cents higher at 331.525 cents per pound.
