Lean hog futures end the day mixed - CME
Live, feeder cattle futures fall on profit taking
30 January 2025
2 minute read
By: Chicago Mercantile Exchange (CME) feeder and live cattle futures finished lower on Wednesday, on a technical correction and profit taking following sharp increases in the previous session, Reuters reported, citing traders.
Lean hog futures ended the day mixed as market players continued to grapple with a lower-than-expected number of slaughter-ready hogs, though the possibility of tariffs kept a ceiling on prices.
The most-active CME April live cattle contract ended down 2.325 cents at 204.95 cents per pound, after rising for five trading days in a row. However, the front-month and three back-month live cattle contracts reached fresh lifetime highs earlier in the session.
CME March feeder cattle settled down 2.975 cents at 275.275 cents per pound, hitting lifetime highs along with several other contracts. Five other feeder cattle contracts also hit fresh life-of-contract highs during the session.
A strong cash cattle market and resilient consumer beef demand are continuing to bolster cattle futures, traders said.
"Consumer beef demand is fully intact and is not wavering one bit," Dennis Smith, broker at Archer Financial Services, said.
The US cattle herd, already at a 73-year low, has been further constrained by cold weather, which makes cattle put on weight slower and lengthens the time it takes to send cattle to slaughter.
The lack of cattle imports from Mexico after the US blocked shipments in November over the discovery of the New World screwworm pest in Mexico has only exacerbated the problem.
In hogs, the most-active CME April hogs ended the day up 0.425 cent at 91.325 cents per pound, with most back-month contracts notching lifetime highs.
Traders waited to see if US President Donald Trump will follow through on threats to impose 25% tariffs on imports from Canada and Mexico on Feb. 1, a move likely to spark retaliation from two major US crop importers.
Mexico is one of the largest importers of US pork, especially hams.
"Hogs can't get a bullish close because of the huge uncertainty surrounding Feb. 1 and the possibility of tariffs," Smith said.
