Cattle futures rise, supported by high cash prices - CME
Lean hog futures rise
6 February 2025
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures advanced on Wednesday as high cash prices helped fuel a turnaround from recent losses, Reuters reported, citing traders.
Lean hog futures also rose.
Cattle futures recovered after sinking on Monday and Tuesday, when concerns eased about the risk for trade disputes with Canada and Mexico to disrupt the flow of livestock into the United States. US President Donald Trump on Monday postponed plans for tariffs against imports from Mexico and Canada for a month.
Strength in the cash market for cattle supported the rebound, traders said, at a time when US supplies are at their lowest levels in decades.
"Until cash breaks, the futures market on sharp breaks looks undervalued," said Don Roose, president of brokerage US Commodities.
Most-active CME April live cattle futures jumped 2.65 cents to end at 201.300 cents per pound after falling on Tuesday to the lowest price since Jan. 22. March feeder cattle rose 2.475 cents to finish at 270.725 cents per pound, following a drop on Tuesday to the lowest level since Jan. 21.
Live cattle and feeder cattle futures reached record highs recently in front-month contracts due to tight inventories and strong beef demand.
In CME's hog market, most-active April futures closed up 1.8 cents at 91.550 cents per pound, extending gains after falling an exchange-imposed 4-cent limit on Monday.
China, the world's biggest pork consumer, on Tuesday imposed limited tariffs on US imports, not including pork. The measured response to a decision by Trump to slap 10% tariffs on all Chinese imports helped alleviate concerns about potential trade disruptions, analysts said.
"We have the tariffs pushing us up and down," Roose said.
Traders on Thursday will review weekly US Department of Agriculture export sales data for pork and beef.
