Hog futures hit contact highs on tighter slaughter - CME
Cold snap sends US cattle futures sharply higher
27 January 2026
1 minute read
By: Chicago Mercantile Exchange (CME) cattle futures jumped on Monday as bitterly cold weather was expected to slow weight gain in the decimated US herd, analysts said, while hog futures stormed to contract highs, reported Reuters.
US cattle inventories are tight after ranchers slashed the nation's herd to its smallest size in decades due to a persistent drought that affected pasture lands.
Livestock traders worried that frigid weather could further limit supplies after a monster winter storm dumped a foot of snow from New Mexico to New England.
Cattle tend to put on weight more slowly in cold weather because they expend more energy on staying warm, and some calves could die from the cold, analysts said.
There were 11.5 million head of cattle on feed in feedlots as of January 1, down 3.2% from a year earlier, the US Department of Agriculture (USDA) said after the markets closed on Friday. That matched analysts' expectations.
On January 30, the agency is slated to issue a biannual update on US cattle inventories.
"Packers that need to buy a minimum number of cattle to run production have had to raise bids in order to get covered," Steiner Consulting Group said in a note.
"Packers will find it difficult to reconcile their needs with what is available at feedlots in any given week."
CME February live cattle futures finished 1.125 cents stronger at 236.025 cents per pound. March feeder cattle futures rallied 2.425 cents to 362.600 cents per pound.
In the hog market, futures rose as US slaughtering has declined this year, traders said.
Packers slaughtered an estimated 426,000 hogs on Monday, compared to 421,000 hogs a week earlier and 481,345 hogs a year earlier, according to the USDA. So far in 2026, they have processed about 9 million hogs, down 4.6% from last year, agency data show.
Traders said there were concerns that hog diseases were hurting production on farms.
CME April lean hogs ended up 0.550 cent at 96.725 cents per pound and set a contract high of 97.375 cents.
