Hog market eases after seven-session rally - CME
Cattle futures slide on negative packer margins
27 February 2026
1 minute read
By: Chicago Mercantile Exchange (CME) cattle futures tumbled on Thursday in a technical- and fund-selling retreat as deeply negative beef packer margins stoked concerns about a slowdown in demand for cattle, Reuters reported, citing analysts.
A looming strike at a large cattle slaughter and beef processing plant in Greeley, Colorado, heaped further pressure on futures as a loss of production would dent demand for fed cattle.
"You've got these hugely negative packer margins," said Doug Houghton, analyst with Brock Capital Management. "There's probably more worry about declining slaughter runs and the fears that some slaughter plants might be shut down, at least temporarily."
The average beef packer margin was estimated at a negative $256.95 per head on Thursday, compared with a negative $358.15 per head a week ago, according to livestock marketing advisory service HedgersEdge.
Lower bids by packers at U.S. Plains feedlot markets on Thursday were an early indication that cash cattle could trade lower this week, analysts said. Widespread trading was yet to develop, but packer bids on Thursday were at $243 and $245 per hundredweight, below peak prices of $249 last week in the central and southern Plains.
CME April live cattle futures LCJ26 closed 3.375 cents lower at 236.900 cents per pound, the lowest settlement in three weeks. April feeder cattle FCJ26 fell 5.275 cents to finish at 358.750 cents per pound, the lowest closing price in more than a month. Both contracts hit overhead technical chart resistance at their 20-day moving averages and fell below their 40-day moving averages for the first time since early December.
Lean hog futures were lower in nearby contracts on Thursday, pressured by profit taking after seven straight sessions of gains. Deferred month contracts were modestly higher.
CME April hogs LHJ26 closed 0.475 cent lower at 95.725 cents per pound after hitting their highest level since February 10 in the previous session. August 2026 through April 2027 futures posted contract highs during the session on seasonal demand as hog prices normally rise in the spring months.
