28 January 2025

2 minute read

By: Global Ag Media

North America

Chicago Mercantile Exchange (CME) cattle futures turned higher on Monday, with live cattle contracts surging to fresh lifetime highs, as traders reacted to news that there would be fewer than expected slaughter-ready cattle in the months ahead, Reuters reported, citing market analysts.

The most-active CME April live cattle contract ended up 0.800 cent at 203.825 cents per pound. All live cattle contracts reached lifetime highs for the fourth trading day in a row.

CME March feeder cattle settled down 1.325 cents at 275.250 cents per pound, after notching lifetime highs alongside all other contracts earlier in the session.

Meanwhile, CME lean hog futures firmed on strength in wholesale prices, analysts said. The most-active CME April hogs ended the day up 1.675 cents, to settle at 89.875 cents per pound.

The continued rally in live cattle futures was largely driven by surprise over the results of the latest monthly Cattle on Feed report, said Austin Schroeder, senior commodity analyst at Brugler Marketing and Management.

In it, the US Department of Agriculture reported that placements of cattle in feed lots in December fell 3% from the previous year. Analysts expected no change. The report was released on Friday, after the market closed.

Wholesale beef prices also were up on Monday, giving a further boost to cattle futures.

Cattle futures were supported by recent strength in the cash cattle market, said Brugler, as continued consumer demand for beef and the thin US cattle supply have been pushing cash cattle prices upward, according to analysts.

Packers have been willing to pay up for cattle, analysts said, as freezing weather in much of the US Plains has meant feed lots are holding on to cattle for longer before sending them to slaughter.

And the cutoff of cattle imports from Mexico after the US blocked shipments in November over the discovery of the New World screwworm pest in Mexico is also impacting supplies, analysts said.