US cattle futures lower to mixed - CME
Lean hogs turn lower
12 March 2025
2 minute read
By: Chicago Mercantile Exchange (CME) nearby lean hog futures turned lower on Monday, with the front-month contract falling as market participants sought profits and continued to adjust their positions as part of the so-called Goldman roll, Reuters reported, citing traders.
Tuesday was the third day of the five-session roll for funds tracking Goldman Sachs Commodity Index, according to traders.
In CME's lean hog market, for example, investors were selling April futures and buying June as part of this roll, traders said.
But the April contract saw prices drop sharply later in the session, even as wholesale prices fell. The US Department of Agriculture (USDA) priced pork carcasses and most primal cutout values lower on Tuesday afternoon.
Meanwhile, CME live cattle futures turned lower and feeder cattle were mixed, amid concern that US consumers may start hunting for budget dining options after the S&P 500 this week recorded its most significant one-day drop since December 18.
US stocks also closed lower on Tuesday, as a threat of fresh US tariffs along with hopes of a possible peace deal between Ukraine and Russia fuelled volatility.
Traders call it the "wealth effect" or the psychological effect consumers have to falling stock prices, said Dan Norcini, an independent livestock trader.
"When the stock market falls, and they feel 10% or 15% more poor from their 401Ks dropping, they tend to be less likely to buy the expensive steak dinner out at the restaurants and instead look for cheaper alternatives," Norcini said.
CME's April lean hog contract settled down 1.750 cents at 86.550 cents per pound. June hogs ended down 0.450 cent at 98.375 cents.
CME April live cattle settled down 1.025 cents at 199.550 cents per pound.
CME feeder cattle futures ended the day mixed. April feeder cattle futures settling down 0.225-cent at 277.700 cents per pound. May feeders ended up 0.400-cent at 278.95 cents per pound.
