Hog markets slide as technical selling hits farm outlook - CME
Tight cattle supply lifts US beef futures for second day
27 April 2026
1 minute read
By: US cattle futures rose for a second straight session on Friday, supported by tight supplies as US imports of cattle from Mexico remained suspended amid rising cases of the parasitic New World Screwworm south of the border, reported Reuters.
Rising wholesale beef prices also underpinned cattle, along with bargain buying following the market's drop to a one-month low on Thursday.
Chicago Mercantile Exchange (CME) June live cattle gained 1.725 cents to settle at 245.225 cents per pound, but failed to breach technical chart resistance at its 20-day moving average. May feeder cattle ended 2.025 cents higher at 360.900 cents per pound.
"Cattle took support from a spike in New World Screwworm cases in Mexico," said Karl Setzer, partner at Consus Ag Consulting.
"In bordering states there are now 116 active cases, nine more than three days ago. These rising numbers indicate the US border will likely remain closed to live animal imports," he said.
Wholesale beef prices jumped on Friday, with the choice cutout gaining $3.50 to $387.00 per hundredweight and select cuts up $3.49 at $386.07 per cwt, according to the US Department of Agriculture.
But beef packer margins remained deep in the red. The average margin on Friday was estimated at a negative $192.50 per head, up slightly from losses estimated at $225.90 per head a week ago, according to livestock marketing advisory service HedgersEdge.
Packers were able to pay slightly less for cattle at feedlot markets this week, with most sales about $1 to $2 below last week's prices.
CME lean hog futures retreated on Friday and ceded all of the prior session's gains, pressured by long liquidation and technical selling.
Benchmark June lean hogs hit overhead chart resistance at its 20-day moving average and breached technical support at its 200-day average to close at 101.900 cents per pound, down 1.550 cents.
