Cattle futures hold steady - CME
Hog futures rise as pork prices firm
15 January 2025
2 minute read
By: Chicago Mercantile Exchange (CME) lean hog futures rose on Tuesday with the front two contracts posting multi-week highs, supported by improving wholesale prices for pork, Reuters reported, citing traders.
CME February lean hogs settled up 0.450 cent at 83.625 cents per pound after reaching 83.875 cents, the contract's highest since Dec. 30. April hogs ended up 1.200 cents at 90.500 cents after hitting 90.625 cents, their highest point since Dec. 23.
Hog futures got a boost as the US Department of Agriculture (USDA) priced carcasses on Tuesday morning at $92.23 per hundredweight (cwt), up $2.03 from Monday. However, the government's updated closing cutout price, released after Tuesday's CME close, was $90.21, up only a penny from Monday.
Still, pork cutout values have stabilized since dipping to an 11-month low last week at $87.83 per cwt.
"We saw the cutout pull back, and now it has kind of found some stability. And futures have done the same," said Altin Kalo, chief economist at Steiner Consulting Group, adding, "it has given the market a little bit more confidence."
CME live cattle futures were flat on Tuesday, consolidating after a sharp two-week rally lifted some contracts to life-of-contract highs by Friday. Tight supplies of market-ready cattle and robust beef prices continue to support futures.
"We've hit the pause button here and we will see where the cash (cattle) trade develops this week," Kalo said.
February live cattle futures settled unchanged at 197.400 cents per pound, while April live cattle fell 0.050 cent to finish at 198.150 cents.
CME March feeder cattle rose 0.300 cent to end at 268.200 cents a pound, supported by a setback in prices for corn Cv1, a key feed grain.
Boxed beef values eased slightly on Tuesday afternoon but remained unseasonably high for mid-winter, typically a time of slow demand. The USDA priced choice cuts of beef at $332.98 per cwt, down 37 cents from Monday's 19-month peak of $333.35.
"That is sort of the cutout value that you would expect going into the (summer) grilling season. (Traders) want to see how the market is going to absorb some of these high prices," Kalo said.
