Lean hog futures hit contract highs on weak dollar - CME
Beef markets steady as cattle futures ease on thaw
28 January 2026
1 minute read
By: Lean hog futures reached contract highs on the Chicago Mercantile Exchange (CME) on Tuesday as the dollar sank near a four-year low, making US commodities look attractive to importers, reported Reuters.
The hog market has climbed 19% since setting a seven-month low in November, aided lately by fund buying, brokers said.
"There's just enough tailwind from the cheap dollar and good enough nearby demand," said Matt Wiegand, commodity broker for FuturesOne.
CME April lean hog ended up 0.100 cent at 96.825 cents per pound after rising earlier to a contract high of 97.550 cents.
Livestock producers continued to grapple with wintry weather that has slowed the processing of hogs and created harsh conditions for cattle raised outdoors, brokers said.
Meatpackers slaughtered an estimated 483,000 hogs on Tuesday, down from 488,000 hogs a week ago, according to the US Department of Agriculture (USDA). They also slaughtered an estimated 112,000 cattle, down from 114,000 cattle a week earlier, the agency said.
Still, the hog market could be primed for a setback following its recent gains, brokers said.
"We're wildly overbought," Wiegand said.
Cattle futures pulled back after rising on Monday on expectations that bitterly cold weather would slow weight gain in the decimated US herd.
CME February live cattle finished 0.425 cent lower at 235.600 cents per pound, while March feeder cattle futures slipped 0.600 cent to 362.000 cents per pound.
"Weather impacts on the cattle market should begin to loosen up starting today as the region thaws," consultancy StoneX said.
US cattle inventories are tight and beef prices have set records after ranchers slashed the nation's herd to its smallest size in decades due to a persistent drought that burned up pasture lands. Consumer demand for beef has remained robust despite high prices.
On Friday, the USDA is slated to issue a biannual update on US cattle inventories.
