12 February 2025

2 minute read

By: Global Ag Media

North America

Chicago Mercantile Exchange (CME) hog futures rose on Tuesday on higher cash market prices, as a looming winter storm made meatpackers more willing to pay up for hogs in an effort to procure the animals before wintry weather makes transportation of livestock too difficult, Reuters reported. 

The storm bringing heavy snow, ice and frigid temperatures is forecast to hit the northern US, including major hog-producing regions, this week.

Live cattle and feeder cattle futures tipped lower on Tuesday after the US Department of Agriculture in its monthly supply and demand report increased production projections for beef compared to the previous month.

Most-active CME April live cattle futures ended down 2.125 cents to 196.000 cents per pound, after hitting the contract's lowest point since January 2. March feeder cattle settled down 3.350 cents to 264.775 cents per pound.

In CME's hog market, April futures edged up 1.350 cents to 92.975 cents per pound.

Hog futures have also gained support from a smaller-than-expected supply of slaughter-ready hogs.

"Packers are having trouble sourcing hogs," Dennis Smith, a broker at Archer Financial Services, said. "Hog numbers continue to come in lower than projections, and that's contributing to a really nice move in cash hogs and the pork cutout."

In beef, the USDA said a larger calf crop and the resumption of cattle imports from Mexico contributed to its increased production forecast.

The USDA two weekends ago said it would resume cattle imports from Mexico that the agency had blocked since late November over a pest found south of the border, which has added pressure to cattle futures.

Additionally, a new strain of bird flu found in dairy cattle and another human case of bird flu in Nevada sparked a selloff in beef cattle, as traders worried bird flu fears would dent consumer demand for beef, even though bird flu has only been found in dairy cattle.