Lean hog futures decline - CME
Cattle futures mixed as wholesale prices retreat
22 January 2025
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle futures ended mixed on Tuesday as export demand remained solid for beef, Reuters reported, citing analysts, although wholesale prices showed signs of weakening.
US markets were closed on Monday for the Martin Luther King Jr holiday, which coincided with newly sworn-in US president Donald Trump's inauguration.
CME February live cattle futures settled up 0.300 cent at 197.050 cents per pound, while the April contract, which is now the most actively traded, fell 0.175 cent to end at 197.325 cents.
Meanwhile, CME March feeder cattle ended Tuesday down 0.800 cent at 267.250 cents per pound.
Price gains for wholesale beef have slowed, according to analysts, with a seasonal decline expected in the coming months.
The USDA's boxed-beef index for choice cuts fell $1.11 on Tuesday afternoon to $332.05 per hundredweight (cwt). Select cuts gained $0.11 to $319.55.
Still, cattle futures gained support from export sales numbers last week showing steady demand for beef, according to Don Roose, president of US Commodities.
Traders were still watching for clues about when the US Department of Agriculture (USDA) might resume cattle imports from Mexico, after the US blocked shipments in November over the discovery of the New World screwworm pest in Mexico.
CME lean hog futures declined on Tuesday, with futures coming under technical pressure from the funds after hitting contract highs last week, according to Roose.
April hogs settled down 1.625 cents at 86.700 cents per pound and front-month February hogs rose 0.075 cent to 81.200 cents per pound.
The USDA priced pork carcasses were down $1.49 at $90.82 per cwt on Tuesday afternoon.
