Lean hogs edge higher despite export tariff concerns - CME
Cattle futures rebound as tight supply drives prices up
4 August 2025
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures rebounded on Friday from a steep drop during the previous session, reported Reuters.
Tight US inventories and strong demand for beef continued to support the markets, after month-end fund selling and profit taking drove prices lower on Thursday, brokers said. Thursday's setback followed rallies to record highs this week.
Ranchers this summer slashed the nation's cattle inventory to its lowest level since records began in 1973. A severe drought in recent years dried up pastures used for grazing, raising feeding costs, prompting ranchers to reduce their herds, and pushing beef prices to records.
"I really don't think there was much of a fundamental reason for futures to collapse yesterday," said Austin Schroeder, commodity analyst for Brugler Marketing & Management. "A lot of it was just money flow."
August live cattle futures jumped 2.350 cents to end at 230.125 cents per pound on Friday and increased 1.6% for the week.
Before tumbling on Thursday, the contract reached a high of 233.750 cents on Wednesday. That was the highest-ever price on a continuous chart of the front cattle futures contract.
Most-active October live cattle ended up 0.525 cent at 223.675 cents on Friday, after reaching a contract high of 230.425 cents on Wednesday. For the week, the contract edged up 0.2%.
The US Department of Agriculture last week confirmed the cattle herd dropped to 94.2 million head by July 1, a record low for that date, while the number of cattle placed in US feedlots during June fell by 8% compared to a year earlier, a bigger-than-expected drop.
CME September feeder futures advanced 2.375 cents to end at 333.925 cents per pound on Friday after setting a high of 341.050 cents on Thursday. For the week, the contract rose 0.5%.
Livestock traders assessed new US tariffs on dozens of trading partners amid concerns about potential damage to American agricultural exports.
CME August lean hog futures closed up 0.225 cent at 107.35 cents per pound while October hogs rose 0.475 cent to 90.050 cents per pound.
